The U.S. Department of the Treasury, under the leadership of Secretary Scott Bessent, announced two major actions on Oct. 1 as part of Operation Economic Outcast. The moves target Iran’s industrial base and a shadow banking network that the administration says has helped Iran and other adversaries evade sanctions.

Industrial sanctions hit Iran’s auto and rail sectors

Using Executive Order 13902, the Office of Foreign Assets Control (OFAC) placed new sectoral sanctions on Iran’s automotive and rail industries. The Treasury identified Iran Khodro Company and SAIPA Iranian Automobile Manufacturing Company as the two firms that dominate more than 90% of the domestic auto market. Additional designations include Iran Khodro Diesel, Pars Khodro, Zamyad, Niroo Motor Shiraz Industrial and Manufacturing Company, and Niroo Motor Damavand Company.

Foreign suppliers that have provided automotive parts to Iran were also targeted, including Indonesia‑based PT Golden Motorcycle International, UAE‑based Integrated Auto Parts LLC, Turkey‑based Troy Trading Arac Parcalari Sanayi Ve Ticaret Limited Sirketi, and Hong Kong‑based Hessenberg Co. and Tanex Global Trading Hong Kong Limited.

Three Iranian rail companies—Islamic Republic of Iran Railway Company, Raja Passenger Trains Company, and Sherkat‑E Rah Ahan‑E Khamle‑O‑Naghle (Railway Transportation Company)—were added to the sanctions list. Treasury officials noted that Iran’s rail system is increasingly used to transport oil and support regional trade, making it a critical revenue source for the regime.

Manufacturing and metals firms also face restrictions

Under Executive Order 13871, the Treasury designated Heavy Equipment Production Company (HEPCO) and its Shanghai subsidiary for supplying mining and road‑construction equipment that has been used by the Islamic Revolutionary Guard Corps‑Qods Force in construction projects. Additional metal‑industry designations include UAE‑based Silver Line Metal Trading LLC, Germany‑based Tech‑Trade International Impex GmbH, and UAE‑based Traco International FZE, all accused of supporting Iranian steel producers.

The action also targets an alleged network facilitating Iranian steel and oil shipments. Hong Kong‑based businessman Ramin Keshvardoust and several companies linked to him—Shanghai Ruimi Import and Export Trade Co., M and R Steel Co., and Iran‑based Fidar Foolad Radman—were designated for moving tens of millions of dollars in steel and oil transactions.

A7 Network labeled a transnational criminal organization

In a separate announcement, Treasury designated the A7 Network, a shadow banking system with ties to Russia, as a significant transnational criminal organization. The network allegedly uses falsified trade documents and third‑country companies to disguise illicit payments as legitimate commerce.

FinCEN’s investigation found that A7 Network sub‑agents processed more than $17 billion between Jan. 2025 and June 2026, facilitating Iranian oil sales and weapons procurement. The Treasury said the network was created and backed by U.S.–sanctioned individuals and has been used by the Central Bank of Iran, the IRGC and Iran‑backed terrorist groups to move money through the global financial system.

Under the new rule, property and interests in property belonging to the A7 Network and its sub‑agents that are in the United States or controlled by U.S. persons are blocked. U.S. persons are generally prohibited from conducting transactions involving blocked property unless authorized by OFAC, and violations can result in civil or criminal penalties. Certain foreign financial institutions could also face secondary sanctions for significant dealings with designated persons.

Administration’s rationale

Secretary Bessent said the industrial sanctions “severely diminish Iran’s ability to fund its war machine and inflict terror on the world,” while the A7 Network action “dismantles the financial infrastructure that allows Iran and other adversaries to evade sanctions, move illicit funds, and undermine the integrity of the global financial system.” The Trump administration emphasized that these steps are part of a coordinated effort with U.S. agencies and international partners to cut off revenue streams that sustain Iran’s malign activities.

Operation Economic Outcast, launched in August, continues to target revenue sources, sanctions‑evasion networks and financial facilitators that threaten U.S. security and global stability.

Original reporting: The Dallas Express — read the source article.