U.S. Sanctions Even the Islamic Republic of Iran’s Auto and Rail Sectors, Taking Aim at Chinese Firms Too

【Financial News New York = Lee Byung-chul, correspondent】  The administration of Donald Trump has imposed additional sanctions targeting the Islamic Republic of Iran’s auto and rail industries. The measures are aimed at cutting off funding channels for the Iranian regime and the Islamic Revolutionary Guard Corps (IRGC), and Chinese companies were also included among the targets.
The U.S. Department of the Treasury (Treasury Department) said on the 1st (local time) that it had designated companies linked to the Islamic Republic of Iran’s auto and rail sectors, as well as its metals industry, for sanctions administered by the Office of Foreign Assets Control (OFAC).
The sanctions are part of Operation Economic Outcast, which the Trump administration launched in late August. President Donald Trump and Treasury Secretary Scott Bessent described the operation at the time as an “economic D-Day” for the Islamic Republic of Iran.
The Treasury Department determined that the Islamic Republic of Iran’s auto industry is deeply linked to the IRGC. It particularly noted that although the industry incurs annual losses of more than $1 billion, it serves as a “lucrative source of cash” for the Iranian regime.
Accordingly, the sanctions targeted not only the Islamic Republic of Iran’s two largest automakers but also overseas companies that supply auto parts to Iran. Companies based in the United Arab Emirates (UAE), Hong Kong, Indonesia and Türkiye were included.
The rail industry was also directly targeted. The Treasury Department explained that, as the U.S. maritime blockade of the Gulf of Oman continues, the Islamic Republic of Iran is becoming increasingly reliant on its rail network for logistics.
Chinese companies were also included. Along with firms linked to the Islamic Republic of Iran’s metals industry, the Treasury Department sanctioned Chinese companies such as Shanghai Ruimi Import and Export Trade and steelmakers including M&R Steel.
Separately, the Treasury Department imposed additional sanctions on the “A7 network,” which it accused of supporting the Islamic Republic of Iran’s sanctions evasion. The Treasury Department described it as “a Russia-linked shadow financial network used by the Iranian regime to evade sanctions.”
“Operation Economic Outcast has severely weakened the Iranian regime’s ability to fund its war machine,” Bessent said. “This action directly targets those supporting Iran and lays the groundwork for the United States and its partners to completely drain the Iranian regime’s sources of revenue.”




[email protected] Lee Byung-chul, correspondent Reporter