U.S. Treasury Secretary Scott Bessent testifies during a House Committee on Financial Services hearing in the Rayburn House Office Building on Capitol Hill on Sept. 15, 2026 in Washington, DC.
Chip Somodevilla | Getty Images
The Treasury Department on Thursday sanctioned Iran’s automotive and rail sectors as part of the Trump administration’s wartime effort to hobble Tehran by cutting off its remaining financial lifelines.
Several companies connected to Iran’s metals industry, including the Chinese subsidiary of Middle East machinery company HEPCO, are also being designated by the Office of Foreign Assets Control, Treasury said in a news release.
In a separate release, the department announced additional sanctions on the A7 Network, described as a “shadow banking network with ties to Russia used by the Iranian regime to evade sanctions.”
The actions are the latest to come from “Operation Economic Outcast,” the beefed-up sanctions effort that President Donald Trump and Treasury Secretary Scott Bessent touted as Iran’s “economic D-Day” when it was unveiled in late August.
Read more CNBC politics and policy coverage
As with previous sanctions announcements, it was not immediately clear how much of an impact the new penalties would have on Iran, which has faced heavy sanctions for years. Several entities connected to the A7 Network were previously designated in August 2025.
“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,” Bessent said in Thursday’s news release.
“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.
Treasury alleges Iran’s automotive sector is deeply enmeshed with the country’s Revolutionary Guard and serves as a “lucrative cash cow” for the regime, despite sustaining annual losses over $1 billion.
In addition to targeting Iran’s two main auto companies, OFAC is sanctioning foreign suppliers that continue to export auto parts to Iran. They include UAE-based Integrated Auto Parts LLC, Hong Kong’s Hessenberg Co. and Tanex Global Trading Hong Kong Limited, Indonesia’s PT Golden Motorcycle International and Turkey-based Troy Trading Arac Parcalari Sanayi Ve Ticaret Limited Sirketi.
Treasury is also designating several Iranian rail companies, alleging Tehran has come to rely on the sector amid an ongoing U.S. naval blockade in the Gulf of Oman. And the department is designating two China-based steel companies, Shanghai Ruimi Import and Export Trade Co., Ltd. and M and R Steel Co., Ltd., among others.
Operation Economic Outcast has drawn questions about whether the U.S. would extend its reach to China, Iran’s top trading partner and oil buyer.