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Iran: U.S. Economic Sanctions and the Authority to Lift Restrictions

U.S. sanctions related to Iran are arguably among the most comprehensive of any such sanctions that the United States unilaterally maintains with respect to a foreign country. The United States has imposed sanctions on thousands of individuals and entities in Iran and in third countries. Such sanctions have contributed to the U.S. government’s long-standing efforts to deprive the Iranian government of resources to pursue, and to compel it to abandon, its development of a nuclear program, acts of international terrorism, human rights abuse, weapons and missile development and acquisition, and role in regional instability. Such sanctions target much of Iran’s economic activity, including its crude oil exports and banking sector. As part of the 2015 Joint Comprehensive Plan of Action (JCPOA), the United States lifted many nuclear-related sanctions, including those on exports of Iranian oil to third countries, but maintained most other bilateral sanctions measures; in return, Iran agreed to certain limits on its nuclear activities. President Donald Trump ceased U.S. participation in the JCPOA starting in 2018 by reimposing certain sanctions and sanctioning additional entities under both new and existing authorities. Those authorities were kept in place under the Biden Administration, which sanctioned hundreds of additional persons. Upon retaking office, President Trump ordered the imposition of “maximum pressure” on the Iranian government. Still, the Trump Administration conducted some diplomatic engagement with Iran in early 2025 until an Israeli attack on Iran initiated a 12-day conflict that culminated with U.S. airstrikes and an uneasy ceasefire. Another round of U.S.-Iran diplomatic engagement in early 2026 was ended by U.S. and Israeli strikes on Iran that began on February 28, 2026. Those strikes initiated widespread conflict across the region until an April 2026 ceasefire. In a mid-June 2026 memorandum of understanding (MOU), the United States and Iran declared “the immediate and permanent termination of military operations on all fronts” and the United States made certain sanctions-related commitments, including the eventual termination “of all types of sanctions against” Iran as part of a final deal. As of mid-August 2026, the 60-day timeline for a final deal has passed and the MOU is apparently “over,” per President Trump, amid renewed fighting between the United States and Iran largely related to the status of the Strait of Hormuz. The status of U.S.-Iran diplomatic engagement, if any, is unclear as of mid-August 2026. This report identifies the basis in U.S. statutes and executive orders for sanctions imposed on Iran, and the nature of the authority to waive or lift those restrictions. It comprises two tables that present legislation and executive orders that are specific to Iran and its objectionable activities in the areas of terrorism, human rights, and weapons proliferation.

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