The U.S. Department of the Treasury announced new sanctions today targeting Iran’s automotive, rail, manufacturing, and steel sectors as part of Operation Economic Outcast. The measures designate several major Iranian companies and their foreign suppliers, expanding the pressure campaign against Tehran’s remaining industrial lifelines.

The Office of Foreign Assets Control issued sectoral sanctions determinations for the automotive and rail sectors under Executive Order 13902. These determinations allow sanctions on any entity or individual operating in those areas. Designated companies include Iran Khodro Company and SAIPA Iranian Automobile Manufacturing Company, which together account for more than 90 percent of Iran’s domestic auto market, along with subsidiaries such as Iran Khodro Diesel Company, Pars Khodro Company, and Zamyad Company.

In the rail sector, the Treasury sanctioned the state-owned Islamic Republic of Iran Railway Company, Raja Passenger Trains Company, and the private freight operator Sherkat-E Rah Ahan-E Khamle-O-Naghle. The automotive sector, described as Iran’s largest economic sector outside oil and gas, has been linked to the Islamic Revolutionary Guard Corps and generates significant revenue despite reported annual losses exceeding $1 billion.

Additional designations covered manufacturing and metals firms, including Heavy Equipment Production Company and its China-based subsidiary, along with steel-related entities in China and the United Arab Emirates. Foreign suppliers in the UAE, Hong Kong, Indonesia, and Turkey that export parts to Iran also faced sanctions.

The action follows an August 24 launch of Operation Economic Outcast and occurs amid a U.S. naval blockade of Iranian oil shipments through the Strait of Hormuz. Iranian authorities have reportedly shifted reliance to rail and automotive networks for transporting goods. Treasury officials stated the sanctions aim to sever funding channels used by the regime for military activities and other priorities.

The designations build on existing authorities, including Executive Order 13871 for steel and mining sectors. They mark the latest step in "economic D-Day" efforts aimed at isolating the regime from access to international markets and financial systems.