US sanctions Iran rail, auto sectors in latest round

The United States on Thursday imposed a fresh round of sanctions on Iran's automotive and railway sectors, targeting the country's critical transport infrastructure alongside a Russia-linked financial network accused of sanctions evasion. The Treasury Department said the measures represent Washington's latest effort to constrict Tehran's revenue streams amid ongoing tensions.

The sanctions directly target Iran's two largest automakers, Iran Khodro and SAIPA, along with several subsidiaries, as well as the state-owned Islamic Republic of Iran Railway Company and two additional rail firms. The Treasury Department also added Iran's automotive and rail sectors to its sectoral sanctions determinations, a mechanism that allows Washington to target any individual or entity operating in those industries.

Shadow banking network designated

Separately, the Treasury Department designated the A7 Network as a "significant transnational criminal organization," accusing the Russia-linked entity of helping Iran evade sanctions. The network processed more than $17 billion through its sub-agents between January 2025 and June 2026, according to the Treasury Department.

Revenue drain strategy

Treasury Secretary Scott Bessent said the measures directly target Tehran's enablers and set the stage for broader economic isolation. "Today's 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," Bessent said in a statement, emphasizing Washington's commitment to dismantling sanctions evasion channels.