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U.S. Imposes New Sanctions on Iran's Automotive and Rail Industries
The US Treasury Department has imposed new sanctions targeting Iran's automotive and rail industries as the Trump administration seeks to further restrict Tehran's sources of revenue and industrial capacity.
![The United States has targeted Iran's automotive and rail industries in a new round of sanctions against Tehran. [Photo: Hamed Malekpour/Tasnim News Agency]](https://static.wixstatic.com/media/1c4fd3_6be112fb734e4ef5a6c4de80dc173163~mv2.jpg/v1/fill/w_980,h_515,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/1c4fd3_6be112fb734e4ef5a6c4de80dc173163~mv2.jpg)
The Treasury Department announced the measures on Oct. 1 under its “Operation Economic Outcast,” targeting what it described as some of the remaining significant elements of Iran's industrial infrastructure.
The action includes new sectoral sanctions against Iran's automotive and rail industries.
Treasury said the automotive and rail sectors are closely connected to Iran's government and the Islamic Revolutionary Guard Corps, or IRGC. The department said the measures are intended to disrupt revenue streams, logistics networks and sanctions-evasion activities.
The sanctions target major Iranian automakers Iran Khodro Company and SAIPA, which Treasury said together account for more than 90% of Iran's domestic automobile market.
Other designated companies include Iran Khodro Diesel, Pars Khodro, Zamyad, Niroo Motor Shiraz and Niroo Motor Damavand.
The action also targets Iran's rail sector. Treasury designated the Islamic Republic of Iran Railway Company, Raja Passenger Trains Company and Railway Transportation Company under the new measures.
The department also sanctioned foreign companies in Indonesia, the United Arab Emirates, Turkey and Hong Kong that it accused of supplying automotive parts or otherwise supporting Iran's automobile industry.
Treasury said the new measures are part of a broader effort to increase economic pressure on Iran.
The department said US sanctions and a maritime blockade had sharply reduced Iran's oil revenue and increased the importance of other industrial sectors to the Iranian economy.
Those assertions represent the US government's assessment of the sanctions' impact.
