The Enhanced Iran Sanctions Act of 2025 imposes sanctions on those involved in logistical transactions with Iran's energy sector and establishes an interagency working group to coordinate and enforce these sanctions.
Dan Sullivan
Senator
AK
The Enhanced Iran Sanctions Act of 2025 aims to prevent Iran from obtaining nuclear weapons and countering its support for terrorism by imposing sanctions on those involved in logistical transactions of Iranian oil, gas, and petrochemical products. It mandates the President to block the property of sanctioned individuals and entities within the U.S. and deny them U.S. visas, with potential waivers based on national interest. The Act also establishes an Interagency Working Group to coordinate and enhance the enforcement of sanctions against Iran, and encourages the formation of a multilateral contact group with similar countries to coordinate international enforcement of sanctions against Iran. Finally, the Act amends the State Department Basic Authorities Act of 1956 to include identifying individuals or entities involved in activities that violate or evade sanctions under the Enhanced Iran Sanctions Act of 2025.
New Sanctions Bill Tightens Screws on Iranian Oil: Could Squeeze Global Markets, Affecting Your Wallet by 2025
The "Enhanced Iran Sanctions Act of 2025" is all about putting a chokehold on Iran's oil and gas money. The stated goals are preventing Iran from getting nuclear weapons and minimizing threats to U.S. interests, but the main action is to cut off the cash Iran gets from selling oil, gas, and related products. This is done by slapping sanctions on anyone involved in the logistical side of the business – think shipping, trading, or even financing these deals. (SEC. 4)
Cracking Down on Iran's Cash Flow
This bill goes after anyone, anywhere (except U.S. folks), who helps Iran move its oil and petrochemical products. If you're caught, any property you have in the U.S., or that's controlled by Americans, gets frozen. Plus, forget about getting a U.S. visa – you're not coming in. (SEC. 4). "Foreign person" is defined as anyone who is not a United States person, including foreign governments. (SEC. 3)
For example, if a shipping company based in Panama knowingly transports Iranian oil, that company could find its U.S.-based assets frozen and its executives barred from entering the United States. Even a European bank financing these shipments could face similar penalties.
There's a small escape hatch: the President can waive these sanctions for up to 180 days (with possible extensions, but no more than 2 years total) if it's "vital to U.S. national interests." This needs to be justified to Congress, but that language is pretty broad. This waiver authority expires on February 1, 2029. (SEC. 4)
Team America, World Police (of Sanctions)
Beyond the sanctions themselves, the bill sets up an "Interagency Working Group" within 180 days of the bill's enactment. This group, led by the Secretary of State, will include folks from the Departments of State, Treasury, Justice, and other relevant agencies. Their job? To coordinate sanctions enforcement and get other countries on board. (SEC. 5)
They're even supposed to form a "multilateral contact group" – basically, a club of countries that agree to work together on enforcing these sanctions. This group will share info on who's breaking the rules and how, and try to come up with new ways to stop Iran's activities, from enriching uranium to building missiles. (SEC. 5)
Snitching for Dollars?
Here's a twist: the bill also wants the private sector to report on anyone dodging sanctions or dealing with the money from intercepted Iranian oil sales. (SEC. 6) So, businesses are now incentivized to keep an eye out for shady dealings.
The Big Picture
This bill is part of a bigger U.S. policy to squeeze Iran financially. The idea is to deny Iran the resources to fund terrorism, develop weapons, or generally cause trouble. (SEC. 2) It builds on existing sanctions, but this one focuses specifically on the logistics of the oil trade – a key vulnerability.
While the bill aims to pressure the Iranian government, it's regular people and businesses, both in Iran and potentially in other countries that trade with Iran, who could feel the pinch. Reduced trade and higher prices are real possibilities. There is also the real possibility of increased tension with Iran.