U.S. expands Iran sanctions, targets auto and rail sectors, A7 Network
The United States expanded sanctions against Iran-linked industrial and financial networks, targeting major automakers, rail companies and foreign facilitators while separately designating the Russia-linked A7 Network as a transnational criminal organization.
WASHINGTON, October 1, 2026 — The U.S. Treasury Department’s Office of Foreign Assets Control added two individuals and more than two dozen entities to its Specially Designated Nationals list as part of a broad Iran-related sanctions action. The measures also included a transnational criminal organization designation for the A7 Network and new sanctions authorities covering Iran’s automotive and rail sectors.
Among the Iranian companies designated were Iran Khodro Company, SAIPA Iranian Automobile Manufacturing Company, Iran Khodro Diesel Company, Pars Khodro Company and Zamyad Company. OFAC also listed the Islamic Republic of Iran Railway Company and Raja Passenger Trains Company. Treasury said the automotive and rail sectors provide revenue and logistical capacity that support Iran’s government and the Islamic Revolutionary Guard Corps.
The action extends beyond Iran. OFAC designated companies in Hong Kong, mainland China, the United Arab Emirates, Indonesia, Germany and Turkey, including suppliers, trading firms and financial intermediaries that Treasury said supported Iranian industrial or sanctions-evasion activity. The two individuals added to the SDN list were Ramin Keshvardoust and Mehnoosh Poursaraf Hamedani.
OFAC also designated the A7 Network, which Treasury described as a Russia-linked shadow banking network used to disguise sanctioned payments as legitimate commercial transactions. Treasury said A7-linked intermediaries processed more than $17 billion between January 2025 and June 2026 and were used in transactions involving Iranian oil sales and weapons procurement.
In parallel, the Financial Crimes Enforcement Network proposed restrictions on fund transfers involving A7 sub-agents and issued an alert to financial institutions on identifying suspicious activity linked to the network.
Property and interests in property of designated parties that fall under U.S. jurisdiction are blocked, and U.S. persons are generally prohibited from dealing with them unless authorized. Certain dealings may also expose non-US financial institutions to secondary sanctions.
Regulatory Actions
Structured data extracted from official sources and validated by sanctions experts