US Sanctions Iran's Rail Transit, Automotive, and Steel Industries

Under the umbrella of “Operation Economic Exclusion,” the United States Department of the Treasury announced sweeping new sanctions on Thursday, October 1, 2026, targeting Iran’s automotive, railway, manufacturing, and steel sectors.

In an official statement, the US Treasury confirmed that, following the sharp decline in Iran’s oil revenues, these secondary industries have evolved into critical sources of income and logistical capacity for the Islamic Republic. Consequently, the Treasury placed key Iranian state and private industrial entities on its sanctions list, alongside a network of foreign companies and intermediaries accused of supplying raw materials, components, or international market access to Iranian firms.

The most prominent Iranian automakers hit by the new sanctions include Iran Khodro (IKCO), Saipa, Iran Khodro Diesel, Pars Khodro, and Zamyad.

Foreign suppliers accused of facilitating component procurement for Iran’s automotive industry, including firms operating in Turkey, the United Arab Emirates, Indonesia, and Hong Kong, were also designated.

In the transportation and logistics sector, the US Treasury sanctioned the Islamic Republic of Iran Railways (RAI), Raja Passenger Trains Company, and the Rail Transportation Company.

The Treasury noted that, under the conditions of an active maritime blockade, Tehran has relied increasingly on its national rail network to transport petroleum products and maintain regional overland trade.

The new sanctions package further extends to Iran’s heavy machinery and steel production networks. HEPCO (Heavy Equipment Production Company) and its affiliated subsidiaries in Shanghai, as well as several corporate entities based in the UAE and Germany, were officially added to the SDN list.