US sanctions target Iran's auto, rail sectors after blockade chokes shipping lanes

FILE PHOTO: An Iranian technician works at a production line of carmaker Iran Khodro, west of Tehran February 6, 2016. REUTERS/Raheb Homavandi/TIMA/File Photo

WASHINGTON, Oct 1 - The Trump administration on Thursday imposed fresh sanctions on Iran, targeting its rail and automotive conglomerates and international suppliers to the sectors, the Treasury Department said, in the latest US push to isolate Tehran economically.

The sanctions are part of the department's "Operation Economic Outcast," announced August 24, which aims to cut Tehran's funding for the war, missile construction, cyberattacks and the Islamic Revolutionary Guard Corps, or IRGC.

The program aims to force Tehran to negotiate an end to the war that began with a US-Israeli strike on Iran about seven months ago.

The US has imposed a blockade on Iranian oil going through the Strait of Hormuz which has forced Tehran to rely more on autos and rail for transporting petroleum, fertilizer, chemicals and other goods. Thursday's sanctions target those alternatives, according to the Treasury Department.

The sanctions designate Iran Khodro Company, or IKCO, and SAIPA Iranian Automobile Manufacturing Company, or SAIPA. Treasury said the two companies represent more than 90% of Iran's domestic auto market.

Treasury also designated the state-owned Islamic Republic of Iran Railway Company, which provides passenger and freight services, the Raja Passenger Trains Company and Sherkat-E Rah Ahan-E Khamle-O-Naghle, also known as the Railway Transportation Company, which it said is a top private freight line.

Treasury Secretary Scott Bessent said the 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." REUTERS