The measures, detailed in a Tuesday Federal Register notice, are part of the Trump administration’s “maximum pressure” campaign against Tehran, aimed at curbing the privileges of Iranian elites while their citizens grapple with economic hardship.

State Department Principal Deputy Spokesperson Thomas Pigott justified the restrictions, stating, “We will not allow the Iranian regime to permit its clerical elites to indulge in shopping sprees in New York while the Iranian people endure poverty, crumbling infrastructure, and dire shortages of water and electricity.” 

The policy confines Iranian diplomats and officials to essential UN-related activities, blocking access to popular wholesale retailers like Costco, Sam’s Club, and BJ’s Wholesale Club, where they have historically stocked up on electronics, household staples, and other goods scarce in Iran due to US sanctions.

The Federal Register notice further stipulates that purchases of “luxury goods”—including watches, electronics, fountain pens, furs, jewelry, perfumes, alcohol, and tobacco—require explicit State Department approval if valued over $1,000. 

Vehicles exceeding $60,000 are also restricted, effectively halting any lavish spending during the UNGA session. 

The measures extend to family members accompanying the delegation, tightening the economic squeeze.

This move comes amid heightened US-Iran tensions, with President Donald Trump intensifying efforts to dismantle Iran’s nuclear program since his January 2025 inauguration. 

In June, the US, alongside Israel, conducted airstrikes on three Iranian nuclear facilities, further straining Tehran’s economy, which has been battered by sanctions limiting oil exports and access to global markets. 

These restrictions have fueled domestic discontent in Iran, where images of diplomats hauling bulk goods or luxury items from past UNGA visits have sparked resentment among citizens facing blackouts and inflation.

The ban, enforced by the State Department’s Office of Foreign Missions, leverages long-standing authority to regulate diplomats’ activities but marks a symbolic escalation in the US’s strategy to spotlight Iran’s internal disparities. 

While Iran is yet to issue an official response, state media has previously labeled such measures “economic terrorism.”