US sanctions target Iran's auto, rail sectors as blockade chokes ship lanes
The Trump administration imposed sanctions on Iran's rail and auto sectors and their foreign suppliers, the Treasury Department said, as part of "Operation Economic Outcast" announced on August 24. The designations include IranKhodro Company (IKCO) and SAIPA Iranian Automobile Manufacturing Company, which Treasury said represent more than 90% of Iran's domestic auto market, as well as the state-owned Islamic Republic of Iran Railway Company, the Raja Passenger Trains Company and the Railway Transportation Company. The sanctions also target foreign companies in Indonesia, the UAE and Turkey that supply Iran's auto industry, after the US blockade of Iranian ports forced Tehran to rely more on autos and rail for transporting petroleum, fertilizer, chemicals and other goods.
Why it matters: The designations extend the sanctions theme from a maritime blockade to Iran's land transport and manufacturing sectors.