On October 1, 2026, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued new sectoral sanctions determinations targeting Iran’s automotive and rail sectors. These determinations authorize OFAC to sanction any entity or individual operating in these sectors. OFAC stated that Iran’s automotive sector is the country’s largest economic sector outside of oil and gas and remains a core contributor to Iran’s industrial base and is a major revenue generator for the regime. OFAC has also targeted Iran’s rail sector stating that, given the maritime blockade, the Iranian regime is using its railway companies to transport oil and sustain regional trade. In addition to these new automotive and rails sectoral sanctions, OFAC also announced additional designations and placement on the Specially Designated Nationals (SDN) List of multiple Iranian and third-country entities and individuals involved in the Iranian heavy equipment, mining, metals, steel and oil networks. Additional information on OFAC targeting of Iran’s automotive, rail, manufacturing, and steel industrial sectors is available here.
Specific identifying information on newly sanctioned entities and persons under these aviation and rail sectoral sanctions is available here. As a result of these actions, all property and interests in property of these designated or blocked persons that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of blocked persons.
Further, OFAC has issued a revised FAQ to assist in guidance on how it defines the sectors of the Iranain economy under its sectoral sanctions.
With these most recent sanctions, Iran’s oil, aviation, automotive and rail sectors are now targeted as being industrial sectors providing revenue to the Iranian regime and the Islamic Revolutionary Guard Corps (IRGC). For additional information on OFAC sanctions, see SmarTrade updates of September 11, 2026, August 25, 2026, and February 12, 2026.