Enhanced Iran Sanctions Act of 2025
S.556 – Enhanced Iran Sanctions Act of 2025 to tighten penalties on Iran’s oil and gas logistics and sanctions evasion
119th Congress
This bill would require new U.S. sanctions on foreign people and companies that help move, sell, or finance oil, gas, and petrochemical products from Iran. It also sets up a U.S. government working group and encourages cooperation with other countries to enforce these sanctions. The bill was introduced in the Senate and referred to the Committee on Foreign Relations.
- Bill Number
- S556
- Chamber
- senate
What This Bill Does
The bill orders the U.S. President to impose sanctions on foreign people and entities, such as banks, shipping registries, insurance companies, and gas pipeline facilities, that knowingly take part in processing, exporting, or selling oil, gas, liquefied natural gas, or petrochemical products coming in whole or in part from Iran. It also covers subsidiaries, successor companies, and those owned or controlled (50 percent or more) by already sanctioned persons, as well as corporate officers and certain immediate family members of those involved. The main sanctions are freezing any property or interests in property that these persons have in the United States or that come under the control of a U.S. person, and blocking almost all transactions with them. In addition, targeted foreign individuals become ineligible for U.S. visas and admission, and any existing visas are revoked, with narrow exceptions when the United States must honor international agreements (such as for the United Nations) or support law enforcement. The bill states that it does not require sanctions on the import of “goods” into the United States as such, defining that term broadly for physical items. It allows the President to waive sanctions for specific foreign persons, for up to 180 days at a time (renewable up to a total of two years), if this is certified as vital to U.S. national interests and explained in detail to certain congressional committees. The authority to issue new waivers under this bill ends on February 1, 2029. To improve enforcement, the bill directs the Secretary of State to create an “Interagency Working Group on Iranian Sanctions” within 180 days, made up of representatives from the State Department, Treasury, Justice, and other agencies as needed. This working group is encouraged to build a multilateral contact group with like‑minded countries to share information on sanctions rules, new designated entities, and sanctions evasion methods, and to coordinate new measures on Iran’s uranium enrichment, missile production, and support for terrorism. The bill also amends existing law to add rewards or incentives for private sector reporting: it adds to the State Department’s rewards authority the identification of persons described in this bill, including those trying to evade sanctions using proceeds from intercepted Iranian oil, gas, LNG, petrochemicals, or related products. It further clarifies that one ownership‑control provision should be interpreted consistent with prior guidance from the Treasury’s Office of Foreign Assets Control (OFAC).
