<p class="wp-block-paragraph">The <a href="https://www.washingtonexaminer.com/tag/treasury-department" rel="noopener noreferrer" target="_blank">Treasury Department</a> announced on Thursday afternoon new sanctions against Iran’s leading automotive and railway companies in response to the Islamic Revolutionary <a href="https://www.washingtonexaminer.com/tag/iran/" rel="noopener noreferrer" target="_blank">Guard Corps’</a> use of these sectors to evade the U.S. naval blockade.</p>
<p class="wp-block-paragraph">These sanctions are part of Operation Economic Outcast, the department’s ongoing effort to impact the Iranian economy and the Guard. The United States has previously issued sanctions on Iran’s aviation, shipping, technology, digital assets, gold, as well as petroleum and petrochemical sectors.</p>
<p class="wp-block-paragraph">Treasury Secretary Scott Bessent stated, “The Iranian regime’s ability to fund its war machine and inflict terror on the world has been severely diminished thanks to Operation Economic Outcast. 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.”</p>
<p class="wp-block-paragraph">Iran Khodro Company and SAIPA Iranian Automobile Manufacturing Company, which together represent over 90% of the country’s domestic car market, were included in the sanctions. A Treasury Department release noted that this sector is “Iran’s largest economic sector outside of oil and gas, remains a core contributor to Iran’s industrial base and is a major revenue generator for the regime.”</p>
<p class="wp-block-paragraph">Niroo Motor Shiraz Industrial and Manufacturing Company, the largest motorcycle manufacturer in Iran, was also sanctioned for its cooperation with the Guard and the domestic state security apparatus, including providing motorcycles to intelligence officers.</p>
<p class="wp-block-paragraph">Several foreign companies, including UAE-based Troy Trading Arac Parcalari Sanayi Ve Ticket Limited Sirketi, Hong Kong-based Hessenberg Co., Limited, and Tanex Global Trading Hong Kong Limited, were sanctioned for their support of Iran’s auto industry.</p>
<p class="wp-block-paragraph">The sanctions also targeted multiple entities involved in the Iranian railway system, which the Treasury Department claims has been used to circumvent the U.S. naval blockade by transporting oil via key land routes. Additional sanctions were placed on companies involved in manufacturing, mining, and metals, including steel.</p>
<p class="wp-block-paragraph">Iranian business people Ramin Keshvardoust and Mehnoosh Poursaraf Hamedani, both based in Hong Kong, were sanctioned as well. Keshvardoust is accused of facilitating shipments of Iranian steel and oil totaling tens of millions of dollars, while Hamedani is a shareholder in one of Keshvardoust's steel companies.</p>
<p class="wp-block-paragraph">The cumulative effect of the sanctions and the naval blockade has led to Iran’s rial currency reaching a record low against the U.S. dollar earlier this week.</p>
<p class="wp-block-paragraph">The U.S. military initiated a naval blockade of Iranian ports in April, shortly after President Donald Trump announced a ceasefire on April 7. The blockade was paused in mid-June following the signing of a Memorandum of Understanding, which lasted until mid-July. The Navy resumed its blockade after the collapse of the MOU.</p>
<p class="wp-block-paragraph">U.S. Central Command, responsible for military operations in the Middle East, reported on Wednesday that as of September 30, U.S. forces have redirected 125 commercial vessels.</p>