Treasury sanctions operation targets Iran's auto, rail industries in latest economic attack

U.S. Treasury Secretary Scott Bessent testifies during a House Committee on Financial Services hearing in the Rayburn House Office Building on Capitol Hill on Sept. 15, 2026 in Washington, DC.Chip Somodevilla | Getty ImagesThe Treasury Department on Thursday sanctioned Iran's automotive and rail sectors as part of the Trump administration's wartime effort to hobble Tehran by cutting off its remaining financial lifelines.Several companies connected to Iran's metals industry, including the Chinese subsidiary of Middle East machinery company HEPCO, are also being designated by the Office of Foreign Assets Control, Treasury said in a news release.The action is the latest to come from "Operation Economic Outcast," the beefed-up sanctions effort that President Donald Trump and Treasury Secretary Scott Bessent touted as Iran's "economic D-Day" when it was unveiled in late August.Read more CNBC politics and policy coverageAs with previous sanctions announcements, it was not immediately clear how much of an impact the new penalties would have on Iran, which has faced heavy sanctions for years. "The Iranian regime's ability to fund its war machine and inflict terror on the world has been sev...