The U.S. Department of the Treasury (opens in new tab) on Thursday targeted Iran’s automotive and rail industries as part of Operation Economic Outcast, issuing sectoral sanctions determinations and designating major domestic firms and foreign suppliers.
In a press release, Treasury said OFAC (opens in new tab) issued two determinations under Executive Order 13902 covering Iran’s automotive and rail sectors, authorizing sanctions on anyone operating in those industries. Designated Iranian automakers include Iran Khodro Company, SAIPA, Iran Khodro Diesel, Pars Khodro and Zamyad, plus motorcycle makers in the Niroo Motor group. Rail designations include the Islamic Republic of Iran Railway Company (RAI), Raja Passenger Trains Company and a freight firm known as the Railway Transportation Company.
Treasury Secretary Scott Bessent said the action “directly targets Iran’s enablers.” Treasury said the regime has grown more dependent on these industries as the U.S. military’s maritime blockade cuts its oil revenue. The release also named foreign auto-parts suppliers and facilitators in Indonesia, the United Arab Emirates, Türkiye and Hong Kong, and additional manufacturing and steel-linked networks in China, Germany and the UAE under related authorities.
OFAC (opens in new tab) said property of designated persons in the United States or held by U.S. persons is blocked, and warned of secondary-sanctions risk for foreign financial institutions that knowingly facilitate significant transactions for designated parties. The designations are a U.S. administrative action; their economic effect inside Iran will take time to measure.