What happened
The US Treasury Department has imposed new sanctions on Iran's automotive and rail sectors. The sanctions target companies that have been used to evade a US naval blockade, including Iran's leading automotive and railway companies.
The sanctions are part of Operation Economic Outcast, an ongoing effort to squeeze the Iranian economy and limit the Islamic Revolutionary Guard Corps' ability to fund its activities. The US has already imposed sanctions on various Iranian sectors, including aviation, shipping, and petroleum.
The latest sanctions target two major car companies, Iran Khodro Company and SAIPA Iranian Automobile Manufacturing Company, which together account for over 90% of Iran's domestic car market. A motorcycle company, Niroo Motor Shiraz Industrial and Manufacturing Company, was also sanctioned due to its cooperation with the Guard and domestic state security apparatus.
Additionally, several companies outside Iran, including those based in the UAE and Hong Kong, were sanctioned for supporting Iran's auto industry. Multiple entities involved in the Iranian railway system were also targeted, as they have been used to transport oil via land routes and circumvent the US naval blockade.
The sanctions have had a significant impact on Iran's economy, with the country's rial currency hitting a new record low against the US dollar. The US naval blockade, which was imposed in April and resumed in July, has redirected 125 commercial vessels as of September 30.
