Enhanced Iran Sanctions Act of 2025
Click any stage to learn more about the legislative process.
Would authorize the President to impose property-blocking sanctions and visa bans on any foreign person that knowingly engages in significant transactions involving Iranian oil, condensates, or petrochemical products — and would extend those sanctions to subsidiaries, corporate officers, and family members who benefit from such activity.
The bill targets a key revenue stream Iran uses to fund nuclear development, terrorism, and weapons proliferation, and would expand the State Department's Rewards for Justice program to pay informants who identify sanctions violators or evaders.
What this bill would do
What it would do
The bill would authorize the President to impose two categories of sanctions on foreign persons who knowingly engage in significant transactions related to the processing, refining, export, or sale of Iranian petroleum and petrochemical products: blocking all U.S.-jurisdiction property and interests of the sanctioned person, and barring the person from entering the United States (revoking existing visas immediately). Sanctions would extend automatically to subsidiaries and corporate officers of a sanctioned entity, and to immediate family members who demonstrably benefit from the prohibited activity. The President would be required to issue implementing regulations within 60 days of enactment and could waive sanctions for up to 180-day renewable periods upon certifying national-interest necessity to Congress. The bill also amends the Rewards for Justice Program to authorize payments for information identifying sanctions violators or evaders.
The bill excepts humanitarian transactions, authorized intelligence and law enforcement activities, compliance with U.S. international obligations (including the UN Headquarters Agreement), and provisions supplied to vessels for crew safety. Sanctions authority under the bill would terminate 30 days after the President certifies that Iran has stopped supporting terrorism and has verifiably dismantled its nuclear, biological, chemical, and ballistic-missile programs.
Key provisions
- 1Would authorize the President to impose property-blocking sanctions and visa bans on foreign persons that knowingly engage in significant transactions involving Iranian oil, condensates, or petrochemical products.
- 2Would extend sanctions automatically to subsidiaries and corporate officers of a sanctioned entity, and to immediate family members who demonstrably benefit from the prohibited activity.
- 3Would require the President to issue implementing regulations within 60 days of enactment and allow case-by-case waivers of up to 180 days upon certification to Congress.
- 4Would establish termination conditions: sanctions cease 30 days after the President certifies Iran has stopped supporting terrorism and verifiably dismantled its WMD and ballistic-missile programs.
- 5Would amend the Rewards for Justice Program to authorize reward payments for information identifying persons who violate or attempt to evade these Iran sanctions.
Who would be affected
Foreign companies, banks, shipping firms, and individuals worldwide — including Chinese, Indian, and other major oil importers' state and private entities — that buy, transport, process, or sell Iranian petroleum or petrochemical products. Their corporate subsidiaries, senior officers, and family members who benefit from the activity would also be directly targeted, as would persons transacting with already-sanctioned entities under the Stop Harboring Iranian Petroleum Act.
Why it matters
Foreign entities trading in Iranian oil would face U.S. asset freezes and visa bans — effectively cutting them off from the U.S. financial system. The extension of sanctions to officers and family members creates personal liability pressure on corporate structures that might otherwise shield principal actors. Rewards payments could generate new leads on sanctions evasion networks, and the 60-day regulation deadline would force rapid implementation.
What would change
Changes to existing law
Amends State Department Basic Authorities Act of 1956 (22 U.S.C. 2708) (Sec. 3)
Adds a new paragraph to the Rewards for Justice Program authorizing payments for information identifying persons who violate or evade Iran petroleum sanctions under this Act or the Stop Harboring Iranian Petroleum Act.
Amends Stop Harboring Iranian Petroleum Act (22 U.S.C. 8572) (Sec. 4(a)(5))
Incorporates its sanctioned persons into the new sanctions reach: persons transacting with SHIP Act-sanctioned entities are also subject to sanctions under this bill.
Agencies directed to act
Effective dates
- Sanctions authority takes effect upon enactment
- President must issue implementing regulations or guidance
- Sanctions authority terminates after presidential certification conditions are met
Funding and costs
Congressional Budget Office estimate
CBO estimates that H.R. 1422 would have no significant net effect on the federal deficit, as any increased administrative costs would be small and could be absorbed within existing agency resources.
CBO's estimate for H.R. 1422, the Enhanced Iran Sanctions Act of 2025, finds that the bill would not produce a significant budgetary impact. The bill would expand U.S. sanctions on Iran's crude oil and petroleum product transactions and authorize the Department of State to offer rewards — typically ranging between $1 million and $5 million — for information about individuals and entities evading those sanctions. CBO notes that many of the people and entities targeted by this bill are already sought under existing reward programs, limiting the incremental cost. No significant intergovernmental or private-sector mandates were identified that would exceed statutory thresholds.
How implementation would work
The President would implement sanctions using existing authorities under the International Emergency Economic Powers Act and must publish regulations or guidance within 60 days of enactment. Each sanction determination is presidential, with waivers available for up to 180 days at a time; renewal requires a phase-out plan submitted to Congress. The State Department would administer Rewards for Justice payments to informants. Penalties for violations mirror those in the International Emergency Economic Powers Act. Sanctions would lapse if the President makes a two-part certification to Congress that Iran has ended terrorism support and dismantled WMDs.
Legislative status & sources
Latest action
Received in the Senate and Read twice and referred to the Committee on Foreign Relations.
Official CRS summary
Show the CRS summaryHide the CRS summary
This bill imposes sanctions on certain foreign persons (individuals and entities) that are involved in Iran's petroleum sector as well as certain associated persons. The bill also requires or authorizes actions to facilitate the enforcement of sanctions on Iran.
Specifically, the bill requires the President to impose visa- and property-blocking sanctions on any foreign person that, after the bill's enactment, knowingly engages in any transaction related to the processing, export, or sale of oil, condensates, gas, liquefied natural gas, or other petrochemical products in whole or in part from Iran. The President must also impose sanctions on certain foreign persons associated with a sanctioned individual or entity. For example, the President must sanction the subsidiaries and corporate officers of a sanctioned business.
The bill provides certain exceptions to these sanctions, including specifying that sanctions do not apply to the importation of goods or to conducting or facilitating transactions for humanitarian assistance.
The Department of State must establish an interagency working group that shall seek to establish a multilateral contact group to coordinate international efforts to enforce sanctions on Iran.
The bill expands the State Department rewards program to authorize a reward payment to any individual who furnishes information leading to the identification of a person (1) subject to sanctions under this bill, or (2) that has attempted or is attempting to evade sanctions under this bill.
Legislative subjects
Advisory bodies; Aviation and airports; Congressional oversight; Foreign property; Human rights; Immigration status and procedures; International Affairs; Iran; Marine and inland water transportation; Middle East; Nuclear weapons; Oil and gas; Presidents and presidential powers, Vice Presidents; Sanctions; Terrorism; Visas and passports