OFAC Extends Iran Sanctions to Automotive and Rail Sectors

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) determined on October 1, 2026 that section 1(a)(i) of Executive Order 13902 applies to the automotive and rail sectors of the Iranian economy, with effect from that same day. The determination was signed by OFAC Director Bradley T. Smith in consultation with the Department of State and published in the Federal Register of October 13, 2026 (Vol. 91, No. 196, p. 64758) under document FR Doc. 2026–20839.

The legal basis: Executive Order 13902

On January 10, 2020, the President issued Executive Order 13902, “Imposing Sanctions With Respect to Additional Sectors of Iran” (85 FR 2003, January 14, 2020), invoking among other authorities the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.). Section 1(a)(i) blocks, with certain exceptions, all property and interests in property that are in the United States, that come within the United States, or that are or come within the possession or control of any U.S. person, of any person determined by the Secretary of the Treasury, in consultation with the Secretary of State, to operate in the construction, mining, manufacturing or textiles sectors of the Iranian economy — or in any other sector of that economy subsequently determined.

The new determination was issued pursuant to 31 CFR 560.802, within the Iranian Transactions and Sanctions Regulations (31 CFR part 560).

A sector list that keeps growing

OFAC has widened the sectoral scope of E.O. 13902 in successive determinations published in the same gazette:

• August 24, 2026: aviation, digital asset, gold, shipping and technology sectors of the Iranian economy, effective that day.
• October 1, 2026: automotive and rail sectors, effective that day.
• Original 2020 scope: construction, mining, manufacturing and textiles.

What the determination states

The operative text, reproduced in the Federal Register, reads: “To further address the unusual and extraordinary threat to the national security, foreign policy, and economy of the United States described in E.O. 13902, and in consultation with the Department of State and pursuant to 31 CFR 560.802, I hereby determine that section 1(a)(i) of E.O. 13902 shall apply to the automotive and rail sectors of the Iranian economy.” It adds that “any person determined to operate in these sectors shall be subject to sanctions pursuant to section 1(a)(i)” and that the determination “shall take effect on October 1, 2026.”

Exposure for banks and trading partners

The practical effect is that companies, banks and intermediaries found to operate in Iran’s automotive or rail industries can be designated, with all their property and interests in property under U.S. jurisdiction blocked and U.S. persons generally prohibited from transacting with them. The measure lands on a sector already linked to financial-sector designations: on September 4, 2026, OFAC blocked three Turkish entities under E.O. 13902 — Golden Global Yatirim Bankasi Anonim Sirketi, Golden Global Varlik Kiralama Anonim Sirketi and Golden Global Portfoy Yonetimi Anonim Sirketi — and issued a wind-down general license running to September 19, 2026. Separately, General License AA of August 24, 2026 authorised wind-down transactions involving La Nivernaise De Raffinage SAS through 12:01 a.m. eastern daylight time on October 23, 2026.

The determination was made available on OFAC’s website when it was issued; the Federal Register publication carries a filing date of October 9, 2026.

The expansion matters beyond Tehran: any manufacturer, parts supplier, freight operator or lender with contracts touching Iranian vehicle or railway production now sits inside a blocking framework that reaches dollar-clearing banks and third-country intermediaries alike. For compliance teams, the operative date is already past — October 1, 2026 — so exposure assessments must look backwards as well as forwards.

Source: Federal Register, Vol. 91, No. 196, 13 October 2026, Rules and Regulations, p. 64758 (official reference: FR Doc. 2026–20839).