US Slams Brakes on Iran's Economic Lifelines
The US Treasury Department has imposed sanctions on Iran's rail and auto sectors as part of its 'Operation Economic Outcast' campaign, aimed at cutting Tehran's funding for war efforts. The move is a widening of economic pressure on Iran from sea to land, targeting sectors the country has relied on since the Strait of Hormuz naval blockade cut off oil shipments.
The sanctions target over 90% of Iran's domestic auto market, represented by Iran Khodro Company (IKCO) and SAIPA Iranian Automobile Manufacturing Company. The Treasury Department also designated the state-owned Islamic Republic of Iran Railway Company and two top private freight lines, Raja Passenger Trains Company and Sherkat-E Rah Ahan-E Khamle-O-Naghle.
Foreign companies in Indonesia, the UAE, and Turkey that supply Iran's auto industry are also being targeted. The sanctions aim to drain Tehran's revenue by targeting its enablers, according to Treasury Secretary Scott Bessent.