US Sanctions on Iran Expanded: IKCO, SAIPA and Railways Targeted by New Restrictions
The United States has intensified economic pressure on Iran by introducing new restrictions under Operation Economic Outcast. The measures target the automotive, rail, steel, and manufacturing sectors, as well as major Iranian automakers and their foreign suppliers.
On October 1, the U.S. Department of the Treasury announced sectoral sanctions against Iran’s automotive and rail industries. The restrictions target the country’s leading automakers, such as Iran Khodro (IKCO) and SAIPA, which account for over 90% of the domestic auto market, along with several affiliated manufacturers, including Niroo Motor divisions. Simultaneously, sanctions were imposed on the state-owned Islamic Republic of Iran Railway Company (RAI), passenger operator Raja, and private freight carriers. The measures also affect steel and engineering enterprises, alongside foreign suppliers based in the UAE, Turkey, Indonesia, Hong Kong, and China.
U.S. Treasury Secretary Scott Bessent stated that these measures are aimed at the remaining “critical arteries” of the Iranian economy. According to Bessent, the automotive and rail sectors have become essential sources of revenue and logistical capabilities after the naval blockade hindered oil exports.
Separately, Bessent highlighted the campaign’s success in the oil sector. In his statement, he noted that Iran “did not load a single barrel of crude oil onto tankers” in September, adding: “The Trump administration is cutting off a key source of revenue for the Iranian regime.” Tanker tracking data generally confirms a sharp decline or complete halt in new loadings during this period.
Operation Economic Outcast was launched on August 24, 2026. Its goal is to systematically sever the financial, trade, and oil channels that Washington claims allow Tehran to fund military activities, missile programs, and affiliated structures. The campaign includes both direct sanctions against Iranian companies and secondary restrictions on foreign intermediaries.
Experts note that the new measures intensify pressure on Iranian industry amidst already existing restrictions and the naval blockade. However, the long-term effect will depend on the reaction of Iran’s key trading partners, primarily China.
