New measures target Iran’s automotive, rail, steel, and manufacturing sectors while striking an international shadow-banking network accused of facilitating Iranian oil sales, weapons procurement, and sanctions evasion.
The U.S. Department of the Treasury announced two major new actions on October 1 targeting the remaining financial and industrial channels used by Iran’s regime to generate revenue and circumvent sanctions.
The measures, issued under Washington’s Operation Economic Outcast, simultaneously target key sectors of Iran’s domestic economy and the international financial networks that Treasury says enable the regime and the Islamic Revolutionary Guard Corps (IRGC) to move money, sell oil, and procure restricted goods.
Treasury said the latest measures are designed to intensify pressure on what it describes as the regime’s remaining economic lifelines.
Sanctions Target Iran’s Automotive and Rail Sectors
In its first action, Treasury targeted Iran’s automotive, rail, manufacturing, and steel networks.
The department issued new sectoral sanctions determinations under Executive Order 13902 covering Iran’s automotive and rail sectors, allowing the United States to sanction entities and individuals operating in those sectors.
Treasury identified Iran’s two dominant automakers, Iran Khodro Company (IKCO) and SAIPA, which together account for more than 90 percent of Iran’s domestic automobile market. The measures also target Iran Khodro Diesel, Pars Khodro, Zamyad, and motorcycle manufacturers Niroo Motor Shiraz and Niroo Motor Damavand.
Treasury said the automotive sector remains a major source of revenue for the regime and is closely connected to IRGC patronage networks. It also alleged that Niroo Motor Shiraz has used prison labor and supplied more than 6,000 motorcycles for use by plainclothes intelligence agents.
The sanctions extend beyond Iran. Washington also designated companies in Indonesia, the United Arab Emirates, Türkiye, and Hong Kong that Treasury says have supplied Iranian manufacturers with automotive components.
Iran’s Rail Network Comes Under Pressure
The new measures also target Iran’s rail sector, including the state-owned Islamic Republic of Iran Railway Company, Raja Passenger Trains Company, and Sherkat-E Rah Ahan-E Khamle-O-Naghle, also known as the Railway Transportation Company.
According to Treasury, the regime has increasingly relied on rail infrastructure as maritime restrictions have disrupted conventional trade routes. The department specifically said Iran has turned to rail transportation to help move oil and sustain regional commerce.
The designation of the railway companies therefore extends the sanctions campaign beyond traditional oil and financial targets and into the logistics infrastructure that supports the regime’s economic activity.
Steel and Heavy Industry Also Targeted
Treasury also imposed sanctions on companies involved in manufacturing, mining, and metals.
Iran’s metals industry is described by the department as the country’s second-largest export sector after petroleum, making it an important source of foreign revenue.
Among the targets is Heavy Equipment Production Company (HEPCO), a major Iranian manufacturer of mining and road-construction machinery. Treasury alleged that HEPCO equipment has been used by the IRGC-Qods Force to construct and upgrade military training facilities and by the IRGC to build underground installations. Its China-based subsidiary, HEPCO Shanghai, was also designated.
The action further targets companies in the UAE, Germany, China, and Hong Kong that Treasury says have facilitated Iranian steel production and exports.
Treasury also designated Iranian and foreign companies connected to businessman Ramin Keshvardoust, alleging that his corporate network facilitated tens of millions of dollars in Iranian steel and oil transactions and participated in the regime’s shadow-banking system.
U.S. Moves Against the A7 Shadow-Banking Network
In a separate but closely related action, the Treasury Department targeted the A7 Network, a shadow-banking system with links to Russia that Washington says has been used by Iran to evade sanctions.
The Financial Crimes Enforcement Network (FinCEN) proposed a rule that would restrict the transmission of funds involving A7 Network sub-agents. FinCEN also issued an alert to financial institutions identifying indicators that could help detect transactions associated with the network.
At the same time, the Office of Foreign Assets Control (OFAC) designated A7 as a significant transnational criminal organization.
Treasury said the network uses companies in third countries, falsified trade documentation, misleading descriptions of goods, and other methods to disguise sanctioned transactions as legitimate commercial activity.
According to Treasury, A7’s sub-agents processed more than $17 billion between January 2025 and June 2026.
The department further said the network has provided financial pathways for a range of actors, including the Central Bank of Iran, the IRGC, and Iran-backed terrorist organizations.
Links to Iranian Oil and Weapons Procurement
Treasury specifically highlighted A7’s role in facilitating Iranian oil sales and weapons procurement.
One A7 sub-agent, according to the department, directly conducted transactions with entities associated with Iran’s so-called shadow fleet—the network of tankers, shipping companies, and front companies used to transport and sell Iranian oil while circumventing sanctions.
Treasury said that sub-agent and a related company received nearly $140 million from entities involved in Iranian sanctions evasion.
Another A7 sub-agent allegedly transferred approximately $1.6 million to a company linked to Iranian sanctions evasion and weapons procurement.
The Treasury action also identified the A7A5 token, a ruble-backed digital token issued by previously sanctioned Old Vector LLC, as part of the network’s efforts to facilitate international transactions outside conventional financial channels.
Treasury: Pressure Extends Beyond Iran
The two actions demonstrate the broader architecture of Operation Economic Outcast.
Treasury launched the initiative on August 24, describing it as an effort to dismantle the financial networks supporting Iran’s regime. The department has warned foreign companies and financial institutions that facilitating sanctions evasion or illicit finance for Iran can expose them to U.S. sanctions and restrictions on access to the American financial system.
The October 1 measures therefore reach beyond Iranian entities. They target foreign suppliers, trading companies, financial intermediaries, and other facilitators that Washington says help the regime preserve access to international commerce.
Treasury Secretary Scott Bessent said the latest measures are intended to target the networks that continue to provide the regime with revenue and financial access.
The combined actions against Iran’s industrial infrastructure and the A7 financial network mark another expansion of the U.S. campaign from traditional sanctions on individual Iranian entities toward the broader commercial, logistical, and financial systems that allow the regime to continue operating under sanctions.
For Iran’s regime, the pressure now extends across several interconnected channels: industrial production, rail transportation, steel and metals exports, automotive supply chains, oil-related transactions, and the shadow-banking mechanisms used to move money internationally.