Bill Summary

Enhanced Iran Sanctions Act of 2025

February 20, 2025

The Enhanced Iran Sanctions Act (S. 556/H.R. 1422) tightens existing sanctions on Iran while providing new tools to increase enforcement. The legislation targets foreign entities aiding Iran’s illicit export of petroleum, the primary source of revenue for the Iranian regime.

ship with petroleum
Illicit petroleum exports, primarily to China, are a key revenue source for the Iranian regime.

With Iran’s nuclear program advancing, it is crucial for the United States to use all available economic tools to increase pressure on the Iranian regime to alter its dangerous direction.

The bill is authored by Sens. Dan Sullivan (R-AK) and Richard Blumenthal (D-CT) in the Senate and by Reps. Mike Lawler (R-NY) and Sheila Cherfilus-McCormick (D-FL) in the House.

Key Provisions:

  • Policy Statement: Expresses the sense of Congress that the United States must ensure Iran does not acquire a nuclear weapons capability and counter Iran’s regional and global terrorism.
  • Expanded Energy Sanctions: Expands U.S. sanctions to target foreign persons who knowingly engage in “any transaction involved in, relating or incident to” the processing, sale or export of Iranian petroleum. The bill expands the scope of those subject to sanctions to include corporate officers of designated entities.
  • SHIP Act Expansion: Imposes sanctions on foreign persons who conduct significant transactions with ports or refineries that process Iranian petroleum in violation of the Stop Harboring Iranian Petroleum (SHIP) Act.
  • Sanctions Working Group: Mandates the creation of an interagency working group on Iranian sanctions to improve targeting and enforcement coordination.
  • Rewards for Information: Authorizes the Secretary of State to pay financial rewards to persons who provide information leading to the identification of violators of certain Iran energy sanctions.
  • Waiver: Includes a time-limited presidential national security waiver to the sanctions in the bill.

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