The United States has expanded its sanctions campaign against Iran, targeting major automotive and railway companies along with foreign suppliers. The US Treasury Department announced the measures on Thursday as part of Operation Economic Outcast.
Washington says the campaign aims to cut Iran’s funding for its war effort, missile programmes, cyber operations and the Islamic Revolutionary Guard Corps (IRGC).
US Targets Iran’s Auto Industry
The latest sanctions target two of Iran’s biggest automakers, Iran Khodro Company (IKCO) and SAIPA Iranian Automobile Manufacturing Company.
According to the Treasury Department, the two companies account for more than 90% of Iran’s domestic automobile market. Treasury also sanctioned several companies linked to the automotive industry. These include Iran Khodro Diesel, Pars Khodro, Zamyad and motorcycle manufacturer Niroo Motor Shiraz.
Washington says the sector provides significant revenue and industrial capacity to the Iranian government. The US also accused parts of the industry of supporting IRGC-linked networks and sanctions evasion. Those are US government allegations.
Railway Companies Face New Sanctions
Washington also targeted several major Iranian railway companies. The list includes the Islamic Republic of Iran Railway Company, which operates passenger and freight services. The Raja Passenger Trains Company also faces sanctions.
Treasury additionally designated Sherkat-E Rah Ahan-E Khamle-O-Naghle, also known as the Railway Transportation Company. US officials say Iran has increasingly relied on rail transportation as maritime restrictions have limited its access to international shipping routes.
The rail network plays an important role in moving goods and supporting domestic economic activity.
Foreign Suppliers Also Targeted
The latest measures extend beyond Iranian companies. The Treasury Department sanctioned suppliers and facilitators in several countries. The targeted network includes companies based in Indonesia, the United Arab Emirates, Türkiye and Hong Kong.
US officials accuse these companies of supplying automotive parts and other materials to Iranian manufacturers. The move reflects Washington’s broader effort to target companies that maintain Iran’s industrial supply chains.
Treasury has warned that businesses supporting sanctioned Iranian networks could face greater exposure to the US financial system.
Operation Economic Outcast Expands
The latest sanctions form part of Operation Economic Outcast, which Treasury announced on August 24. The campaign seeks to identify and disrupt Iran’s remaining sources of revenue. Washington has already targeted oil networks, financial channels and military procurement networks.
On September 29, Treasury sanctioned individuals and entities involved in procuring weapons and related components for Iran.
The latest action now expands the campaign into additional industrial sectors.
US Says Sanctions Will Increase Pressure
Treasury Secretary Scott Bessent said the new measures target companies that help Iran maintain its economic and industrial networks. He said the action would help weaken Tehran’s ability to finance its activities.
The Treasury Department also warned companies involved in sanctions evasion that they could lose access to the US financial system.
Meanwhile, the latest measures show Washington’s attempt to apply pressure beyond Iran’s oil industry.
Sanctions Could Affect Ordinary Iranians
The expanding sanctions could also create wider economic consequences inside Iran. Automobiles and railways form important parts of Iran’s domestic economy. Restrictions on manufacturers and suppliers could therefore affect production, transportation and employment.
Sanctions expert Brett Erickson warned that stronger economic pressure could also hurt ordinary people who depend on these industries for their livelihoods.
The impact could become more significant if Washington continues targeting companies that supply Iran from abroad.
Washington Broadens Economic Campaign
The latest action marks another expansion of the US economic campaign against Tehran. Washington has already targeted Iran’s oil revenue and military procurement networks.
Now, the focus has moved further into transportation and industrial production.
The Treasury Department has also launched separate action against the A7 Network, a Russia-linked financial network that US officials accuse of helping Iran evade sanctions.
For now, the new sanctions increase pressure on Iran’s automotive and railway industries while raising the risks for foreign companies that continue supplying them.
The measures also show that Washington is pursuing multiple economic channels as it seeks to restrict Tehran’s ability to finance the ongoing conflict.
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