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I agree it was a stupid sale, apart from the commercial realities facing Steyr at present. However, if the State Department had initially allowed the sale of the rifles to the US, which is where they were originally ordered from, then we wouldn't be in this mess now.
Don't blame Steyr completely. Yes, they are responsible for selling rifles to Iran, but they made them for American long range shooters for civilian consumption. Because the State dept wanted Americans to buy American .50 cals, the import permit was refused. So the manufacturer had them on its hands, and decided to go elsewhere.
A sad consequence for everybody.
High-Powered Austrian Rifles Found in Iraq
Just another reason for the Americans to thank the European "friends" in the Austrian government. High-powered 50 caliber rifles sold to Iran "to fight drug smugglers" by the Austrian firm Steyr-Mannlicher are now killing US troops in Iraq, and the Austrian government expressly approved the sale...
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