Since the 1979 Iranian Revolution, the United States has imposed a series of economic, trade, scientific and military sanctions against Iran. United States economic sanctions are administered by the Office of Foreign Assets Control (OFAC), an agency of the United States Department of the Treasury.Haidar, J.I., 2017."Sanctions and Exports Deflection: Evidence from Iran," Economic Policy (Oxford University Press), April 2017, Vol. 32(90), pp. 319-355. As of 2025, United States sanctions against Iran include a comprehensive global trade embargo and a prohibition on the sale of aircraft or repair parts to Iranian aviation companies.

The U.S. government expanded these sanctions in response to Iran's nuclear program and its support for groups designated by the United States as terrorist organizations, including Hezbollah, Hamas, and Palestine Islamic Jihad. Iranian involvement with Shia militias in Iraq and the Houthi movement in the Yemen civil war are also in contention.

In December 2025, US treasury secretary Scott Bessent labelled the collapse of the Iranian currency as the "grand culmination" of the U.S. strategy.

In August 2026, amidst the 2026 Iran war, US president Donald Trump declared "economic d-day," announcing sanctions on nations trading with Iran.

Legal basis United States sanctions can be imposed under the National Emergencies Act (NEA) of 1976, the International Emergency Economic Powers Act (IEEPA) of 1977 and the Iran and Libya Sanctions Act of 1996 (ILSA, later renamed to Iran Sanctions Act (ISA)). The national emergencies underlying these sanctions must be continued annually to remain in effect. Iran-specific sanctions have also been imposed through legislation including the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010, the Iran Threat Reduction and Syria Human Rights Act of 2012, and Iran Freedom and Counter-Proliferation Act of 2012, and the Countering America's Adversaries Through Sanctions Act of 2017. Additional Iran sanctions legislation was enacted in 2024.

Carter presidency United States President Carter imposed sanctions against Iran in November 1979 after radical students seized the United States Embassy in Tehran and took hostages, after the United States permitted the exiled Shah of Iran to enter the United States for medical treatment.Moin Khomeini, (2000), p.220 froze about US$8.1 billion in Iranian assets, including bank deposits, gold and other properties. It also imposed a trade embargo. The sanctions were lifted in January 1981 as part of the Algiers Accords, which were a negotiated settlement of the hostages' release.Charles Nelson Brower and Jason D. Brueschke, The Iran-United States Claims Tribunal (1998) p. 7 online.

Iran and the United States have had no formal diplomatic relations since 7 April 1980. Instead, Pakistan serves as Iran's protecting power in the United States, while Switzerland serves as the United States' protecting power in Iran. Contacts are carried out through the Iranian Interests Section of the Pakistani Embassy in Washington, D.C., and the US Interests Section of the Swiss Embassy in Tehran.

Reagan presidency

United States President Ronald Reagan imposed an arms embargo in 1983 on Iran, including United States military spare parts to the military during the Iran–Iraq War (1981–1988).

An embargo on Iranian goods and services was imposed in 1987 in response to Iran's actions from 1981 to 1987 against U.S. forces and merchant vessels as well as Iran's refusal to implement United Nations Security Council Resolution 598 and the government's support for terrorism.

Clinton presidency United States President Bill Clinton imposed some of the toughest sanctions against Iran in March 1995, during the presidency of Akbar Hashemi Rafsanjani, in response to the Iranian nuclear program and Iranian support for Hezbollah, Hamas, and Palestine Islamic Jihad, that are considered terrorist organizations by the United States under , to prohibit the United States from trading in Iran's oil industry. In May 1995 Clinton also issued to prohibit the United States from trading with Iran. Trade with the United States, which had been growing since the end of the Iran–Iraq War, ended abruptly.

Iran and Libya Sanctions Act

The Iran and Libya Sanctions Act (ILSA) was signed into law on 5 August 1996 by President Clinton. ISA (the renamed ILSA in 2006) targets both American and non-American businesses that make investments over $20 million in Iran for the development of petroleum resources in Iran. They face having imposed against them two out of seven possible penalties by the United States:Wright, Steven. The United States and Persian Gulf Security: The Foundations of the War on Terror, Ithaca Press, 2007 denial of Export-Import Bank assistance, denial of export licenses for exports to the violating company, prohibition on loans or credits from United States financial institutions of over $10 million in any 12-month period, prohibition on designation as a primary dealer for United States government debt instruments, prohibition on serving as an agent of the United States or as a repository for U.S. government funds, denial of United States government procurement opportunities (consistent with WTO obligations), and a ban on all or some imports of the violating company.

ISA was extended several times under the presidency of George W. Bush, and on 1 December 2016, it was extended under President Barack Obama, before vacating office, for a further ten years.

Early Khatami government After the election of Iranian reformist President Mohammad Khatami in 1997, President Clinton eased sanctions on Iran. In 2000 the sanctions for items such as pharmaceuticals, medical equipment, caviar and Persian rugs were reduced.

Bush presidency

In February 2004, during the final year of Khatami's presidency, the United States Department of the Treasury in the presidency of George W. Bush ruled against editing or publishing scientific manuscripts from Iran, and stated that the American scientists collaborating with Iranians could be prosecuted. As a consequence, the Institute of Electrical and Electronics Engineers (IEEE) temporarily stopped editing manuscripts from Iranian researchers and took steps to clarify the OFAC guidelines concerning its publishing and editing activities. In April 2004 IEEE received a response from OFAC which fully resolved that no licenses were needed for publishing works from Iran and that the entire IEEE publication process including peer review and editing was exempt from restrictions."US Reverses Journal Embargo", The Scientist, 7 April 2004 On the other hand, the American Institute of Physics (AIP), the American Physical Society and the American Association for the Advancement of Science, which publishes Science, refused to comply, saying that the prohibition on publishing goes against freedom of speech.

After being elected president in 2005, President Ahmadinejad lifted the suspension of uranium enrichment that had been agreed with the EU3, and the International Atomic Energy Agency reported Iran's non-compliance with its safeguards agreement to the UN Security Council, leading to UN sanctions against Iran over its nuclear program.

In June 2005, President George W. Bush issued freezing the assets of individuals connected with Iran's nuclear program. In June 2007, the U.S. state of Florida enacted a boycott on companies trading with Iran and Sudan, while New Jersey's state legislature was considering similar action.

The United Nations Security Council (UNSC) adopted Resolution 1737 in December 2006, Resolution 1747 in March 2007, Resolution 1803 in March 2008, and Resolution 1929 in June 2010.

Banking sanctions Iranian financial institutions are barred from directly accessing the U.S. financial system, but they are permitted to do so indirectly through banks in other countries. In September 2006, the United States government imposed sanctions on Bank Saderat Iran, barring it from dealing with U.S. financial institutions, even indirectly. The move was announced by Stuart Levey, the undersecretary for the US Treasury, who accused the major state-owned bank in Iran of transferring funds for certain groups, including Hezbollah. Levey said that since 2001 a Hezbollah-controlled organization had received $50 million directly from Iran through Bank Saderat. He said the United States government would also persuade European banks and financial institutions not to deal with Iran.U.S. imposes sanctions on Iranian bank, People's Daily, 9 September 2006 The following Iranian banks were prohibited from transferring money to or from United States banks:John B. Reynolds, III, Amy E. Worlton and Cari N. Stinebower, "U.S. Dollar Transactions with Iran are Subject to New Restrictions – Tough Policy Decisions Face International Financial Institutions", Wiley Rein LLP, 28 November 2007 Bank Sepah Bank Saderat Iran Bank Melli Iran Bank Kargoshaee (aka Kargosa’i Bank) Arian Bank (aka Aryan Bank)

In other words, these banks were placed on the Office of Foreign Assets Control (OFAC) Specially Designated Nationals List (SDN List). The SDN List is a directory of entities and individuals who have been prohibited from accessing the U.S. financial system. Although difficult there are ways to carry out an OFAC SDN List removal.

As of early 2008, the targeted banks, such as Bank Mellat, had been able to replace banking relationships with a few large sanction-compliant banks with relationships with a larger number of smaller non-compliant banks."Iran gets around US bank sanctions", By Najmeh Bozorgmehr in Tehran, Financial Times, 21 August 2008. In 2008, the United States Department of the Treasury ordered Citigroup Inc. to freeze over $2 billion held for Iran in Citigroup accounts.

For individuals and small businesses, these banking restrictions have created a large opportunity for the hawala market, which allows Iranians to transfer money to and from foreign countries using an underground unregulated exchange system.Farnaz Fassihi and Chip Cummins, "Iranians scheme to elude sanctions" , Wall Street Journal, 6 February 2008 In June 2010, in the case United States v. Banki, the use of the hawala method of currency transfer led to a criminal conviction against a U.S. citizen of Iranian origin. Banki was sentenced to two and a half years in federal prison; however, on the sentencing guidelines, this type of offense could result in imprisonment of up to 20 years.

Obama presidency

On 24 June 2010, the United States Senate and House of Representatives passed the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (CISADA), signed into law by President Obama on 1 July 2010. The CISADA greatly enhanced restrictions on Iran, including the rescission of the authorization for Iranian-origin imports for articles such as rugs, pistachios, and caviar. In response, President Obama issued in September 2010 and in May 2011, and in November 2011.

The sanctions imposed on Iran at the beginning of 2012 "had persistent and significant effects on the Iranian economy. The cost reached its maximum of 19.1% of real gross domestic product 4 years after the application of the sanctions, and the economy has not fully recovered after their removal."

On 31 July 2013, members of the United States House of Representatives voted 400 to 20 in favor of toughened sanctions.

The United States imposed additional financial sanctions against Iran, effective 1 July 2013. An administration official explained that according to the new Executive Order "significant transactions in the rial will expose anyone to sanctions," and predicted “it should cause banks and exchanges to dump their rial holdings.” This took place as Iran's president-elect Hassan Rouhani was scheduled to take office on 3 August 2013.

Sanctions against third parties