The U.S. Department of the Treasury announced on October 1 (local time) that it has imposed sanctions on major companies in Iran's automotive and railway sectors as part of its "maximum economic pressure campaign" against Iran.

Treasury Secretary Scott Bessent said in a press release that day, "Thanks to the economic isolation campaign, the Iranian regime's ability to fund its war machine and illicit terrorism worldwide has been severely weakened."

He added, "Today's actions lay the foundation for the United States and our partners to permanently drain this regime's revenues."

The United States has designated a slew of entities for sanctions, including Iran's two major automakers, Iran Khodro (IKCO) and SAIPA, along with their commercial vehicle subsidiaries producing buses and trucks, Iran's largest motorcycle manufacturer Niroo Motor Shiraz, and auto parts suppliers located in Indonesia, the United Arab Emirates (UAE), Turkey, and Hong Kong.

The Treasury Department stated, "The automotive sector is deeply intertwined with Islamic Revolutionary Guard Corps (IRGC) patronage networks, facilitating corruption, trade-based money laundering, and the exploitation of prison labor," adding, "Dismantling these channels is essential to cutting off the IRGC's financing."

In the railway sector, sanctions were imposed on the state-run Islamic Republic of Iran Railways (RAI) and private railway companies such as Raja Passenger Train Company, which took over and operates some passenger operations from RAI.

The Treasury Department explained that with the U.S. military blockading waters around the Strait of Hormuz, Iran has been relying on the railway sector to sustain oil transport and trade.

In addition, Heavy Equipment Production Company (HEPCO), a mining and road construction machinery manufacturer, its Chinese subsidiary, and foreign companies supplying raw materials to Iran's steel industry were also placed on the sanctions list.

(Photo: Getty Images)