U.S. Initiates Economic Outcast Campaign to Cut Off Iran’s Rail and Auto Financing

The United States is intensifying economic pressure on Iran through Operation Economic Outcast. Today’s sanctions focus on networks spanning the Middle East, East Asia, and Europe that support Iran’s rail, automotive, and metals sectors, facilitating sanctions evasion and access to global markets. The Treasury Department has also placed Iran’s automobile and rail industries on its sector‑based sanctions list, authorizing action against any entity engaged in these industries.

This move is part of the wider U.S. strategy to deprive the Iranian regime of the resources it uses to destabilize the region, sponsor terrorism, and pursue military objectives.

The United States will not tolerate Iran’s corrupt leadership exploiting the nation’s industrial base—including state‑owned railways, automakers, and metals producers—to sustain a regime that spreads instability and terror across the Middle East and beyond.

The State Department is collaborating with international partners to close every channel Iran employs to generate illicit revenue and to ensure that governments and businesses worldwide recognize the risks of dealing with the Iranian regime.

OFAC is issuing two new sectoral sanctions determinations under Executive Order 13902, covering Iran’s automotive and rail sectors, enabling it to target any person or entity operating in those areas. Today’s designations are made pursuant to E.O. 13902 and E.O. 13871, which also address Iran’s steel and mining sectors. For further details, refer to the Treasury Department’s Press Release.

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