Treasury strikes at industrial heart of Iranian regime: New sanctions against largest automakers, railroad companies and steel mills

The Department of the Treasury announced a new package of sanctions on Thursday that directly targets Iran's major automakers, rail companies and large steel and machinery manufacturers, in a move that Washington describes as a blow to "critical arteries" that the regime uses to sustain its economy and circumvent international restrictions.

Automotive sector: The two giants, IKCO and SAIPA, in the crosshairs

The Treasury has set its sights on Iran Khodro (IKCO) and SAIPA, the country's two largest automakers, which supply both the domestic market and regional trading partners. In total, seven automakers have been sanctioned in this round, as part of the so-called Operation Economic Outcast, designed to deprive the Ayatollahs' regime of sources of revenue.

Niroo Motor, described as Iran's largest motorcycle manufacturer, has also been sanctioned, as have international partners in the sector, including Indonesia's Golden Motorcycle Company and several automotive parts companies in the United Arab Emirates (UAE), Turkey and Hong Kong.

Railways: State and private operators under pressure

The sanctions target key railway companies, including the state-owned Islamic Republic of Iran Railway Company (RAI), the passenger train operator Raja Passenger Trains Company, and the private freight carrier Sherkat-E Rah Ahan-E Khamle-O-Naghle.

The goal, according to the Treasury, is to limit the regime's logistical capacity to move goods and people, and to reduce its ability to generate revenue through transportation networks directly or indirectly controlled by the state.

Steel and heavy machinery: HEPCO and its global network

The list also includes major steel and manufacturing companies, notably the Heavy Equipment Production Company (HEPCO), described by the Treasury as "one of the largest manufacturers of mining and road-construction machinery in the Middle East." Its Shanghai-based subsidiary has also been sanctioned, as have companies in the UAE and Germany accused of aiding Iranian steel companies.

Furthermore, Washington has targeted what it describes as a complex steel and oil export network managed by two Iranian-Dominican citizens based in Hong Kong, underscoring the effort to dismantle structures used to circumvent sanctions through third countries and nationalities.