US Slams Brakes on Iran's Automotive and Rail Industries with Fresh Sanctions

The US Treasury Department has imposed new sanctions on Iran's automotive and rail sectors as part of its 'Operation Economic Outcast' program. The program aims to cut Tehran's funding for the war, missile construction, cyberattacks, and the Islamic Revolutionary Guard Corps (IRGC). The latest move targets key Iranian companies, including Iran Khodro Company (IKCO) and SAIPA Iranian Automobile Manufacturing Company, which together represent more than 90% of Iran's domestic auto market.

The US has imposed a blockade on Iranian oil going through the Strait of Hormuz, forcing Tehran to rely on autos and rail for transporting petroleum, fertilizer, chemicals, and other goods. The Treasury Department said that Thursday's sanctions directly target those alternatives. The state-owned Islamic Republic of Iran Railway Company, Raja Passenger Trains Company, and Sherkat-E Rah Ahan-E Khamle-O-Naghle (also known as the Railway Transportation Company) are also affected by the new measures.

Treasury Secretary Scott Bessent stated that the action 'directly targets Iran’s enablers and lays the groundwork for the United States and our partners to drain the regime’s revenue once and for all'. The sanctions aim to force Tehran to negotiate an end to the war that began with a US-Israeli strike on Iran about seven months ago.