The U.S. Treasury Department announced on the 1st that it has imposed sanctions on Iran's rail and automotive industries. The aim is to strike at the logistics networks that support crude oil transport and other operations, intensifying pressure on Iran, which is growing more dependent on overland transport due to the de facto closure of the Strait of Hormuz. Those designated include Iran's state railway company, major rail and freight firms, and Iran Khodro, a leading domestic automaker said to have close ties to Iran's elite military force, the Revolutionary Guard. Automotive-related companies in the United Arab Emirates, Turkey, and elsewhere were also added to the list for their involvement in helping Iran evade U.S. sanctions. Furthermore, citing the export of metals and machinery products as a source of funding for Iran, the Treasury also imposed sanctions on the country's mining and road construction machinery companies, freezing all of their assets in the United States. Foreign financial institutions that engage in transactions with the sanctioned companies could face secondary sanctions.
Iran Khodro is directly designated in the new U.S. sanctions, freezing its U.S. assets and exposing foreign counterparties to secondary sanctions.
Iran's state railway company is among the entities sanctioned by the U.S. Treasury, hitting its logistics and freight operations.
