Which Iranian companies were sanctioned by the United States over autos and railways?

The Treasury Department designated Iran Khodro Company, known as IKCO, and SAIPA Iranian Automobile Manufacturing Company, as well as the Islamic Republic of Iran Railway Company, Raja Passenger Trains Company and Sherkat-E Rah Ahan-E Khamle-O-Naghle. It also targeted foreign companies in Indonesia, the UAE and Turkey that supply Iran’s auto industry.

How is the blockade affecting Iran’s economy and ordinary people?

The article says the blockade forced Tehran to rely more on autos and rail for transporting petroleum, fertilizer, chemicals and other goods. Brett Erickson warned that choking the economy this way also chokes the livelihoods of people who depend on it.

US sanctions target Iran's auto, rail sectors as blockade chokes ship lanes

Q: Why did the Trump administration expand sanctions on Iran’s rail and auto sectors?

The Treasury Department said the sanctions are part of Operation Economic Outcast, which aims to cut Tehran’s funding for the war, missile construction, cyberattacks and the IRGC. The move also follows a blockade that cut off oil shipments through the Strait of Hormuz and pushed Iran to rely more on land transport.

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Summary

The Trump administration imposed sanctions on Iran’s rail and auto sectors and their foreign suppliers in Washington on Thursday. The Treasury Department said the move is part of Operation Economic Outcast, aimed at cutting Tehran’s funding for war, missile construction, cyberattacks and the IRGC. The sanctions target major Iranian automakers, rail companies and suppliers in Indonesia, the UAE and Turkey. Treasury said the action extends pressure from sea to land after a blockade cut off oil shipments through the Strait of Hormuz.

Key Facts

Treasury said Iran Khodro Company and SAIPA represent more than 90 percent of Iran’s domestic auto market.
The sanctions also designated the state-owned Islamic Republic of Iran Railway Company, Raja Passenger Trains Company and Sherkat-E Rah Ahan-E Khamle-O-Naghle, also known as the Railway Transportation Company.
Treasury Secretary Scott Bessent said the action directly targets Iran’s enablers and aims to drain the regime’s revenue.
Brett Erickson said the blockade squeezed Iran at sea, sanctions increasingly isolate it by air, and Washington is now constricting its economic arteries on land.

By Reuters

Published Oct 2, 2026 8:10 am KST

Motorcyclists drive past a billboard depicting a Persian legendary hero and flying figure hitting U.S. aircraft carriers alongside the message in English and Farsi: 'From the Persian Gulf a new power rises' 'The army of Satan will be drowned in the Persian Gulf, ' during a state-organized motorcycle parade called 'Janfada,' meaning 'Sacrifice for Iran,' in Tehran, Iran, Sept. 25. AP-Yonhap — Motorcyclists drive past a billboard depicting a Persian legendary hero and flying figure hitting U.S. aircraft carriers alongside the message in English and Farsi: "From the Persian Gulf a new power rises" "The army of Satan will be drowned in the Persian Gulf, " during a state-organized motorcycle parade called "Janfada," meaning "Sacrifice for Iran," in Tehran, Iran, Sept. 25. AP-Yonhap

WASHINGTON — The Trump administration imposed sanctions on Iran's rail and auto sectors and their foreign suppliers, the Treasury Department said on Thursday, widening its wartime economic campaign to isolate Tehran.

The sanctions are part of the department's "Operation Economic Outcast," announced August 24, which aims to cut Tehran's funding for the war, missile construction, cyberattacks and the Islamic Revolutionary Guard Corps or IRGC.

The move extends U.S. economic pressure on Iran from sea to land, targeting sectors Tehran has leaned on since a naval blockade cut off its oil shipments through the Strait of Hormuz. But the expanding sanctions risk inflicting severe costs on ordinary Iranians, one analyst said.

The U.S. blockade of Iranian ports has forced Tehran to rely more on autos and rail for transporting petroleum, fertilizer, chemicals and other goods. Thursday's sanctions target those alternatives, according to the Treasury Department.

The sanctions designate Iran Khodro Company, or IKCO, and SAIPA Iranian Automobile Manufacturing Company, or SAIPA. Treasury said the two companies represent more than 90 percent of Iran's domestic auto market.

Treasury also designated the state-owned Islamic Republic of Iran Railway Company, which provides passenger and freight services, the Raja Passenger Trains Company and Sherkat-E Rah Ahan-E Khamle-O-Naghle, also known as the Railway Transportation Company, which it said is a top private freight line.

Treasury Secretary Scott Bessent said the action "directly targets Iran’s enablers and lays the groundwork for the United States and our partners to drain the regime’s revenue once and for all."

Thursday's sanctions also target foreign companies in Indonesia, the UAE and Turkey that supply Iran's auto industry.

"The blockade squeezed Iran at sea, sanctions increasingly isolate it by air, and now Washington is constricting its economic arteries on land," said Brett Erickson, a sanctions expert and managing principal at Obsidian Risk Advisors. "You cannot choke an economy like this without choking the livelihoods of the people who depend on it."

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