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Clear out junk files and repair common Windows errorsFree Scan →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Repair Windows errors before they cause bigger problemsFix Now →What do U.S. sanctions on Iran restrict? They prohibit or limit many transactions involving Iran, Iranian persons and entities, blocked parties, and designated sectors—especially for U.S. persons. They are not a simple rule that bans every interaction: some communications services, humanitarian trade, and other activity may be authorized or exempt, but only when the applicable conditions are met. The parties, item or service, end use, payment route, and current rules all matter.
Why there is no single Iran-sanctions rule
U.S. Iran sanctions combine regulations, executive authorities, blocking measures, sectoral restrictions, and licenses. The International Traffic in Arms Regulations (ITSR) and other authorities address different kinds of conduct; a transaction can raise more than one issue at once. A rule that authorizes one service or payment does not automatically authorize every related export, counterparty, or financial transaction.
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OFAC’s Iran sanctions program page brings together regulations, executive-order determinations, general licenses, licensing guidance, and frequently asked questions. For a real transaction, identify the exact authority and provision that applies rather than relying on a broad description such as “Iran trade is banned” or “humanitarian goods are exempt.”
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- U.S. persons: U.S. citizens and permanent residents wherever located, entities organized under U.S. law and their foreign branches, and persons in the United States are generally subject to OFAC restrictions. The precise rule depends on the authority involved.
- Iran-related parties and blocked persons: Restrictions can apply to dealings with Iranian persons and entities, as well as persons blocked under Iran or other sanctions programs. A license covering an activity may still exclude blocked parties.
- Goods, services, software, and technology: Exports, reexports, transfers, and services may be restricted under sanctions and export-control rules. The item’s classification and the transaction’s destination, end user, and end use can matter.
- Non-U.S. parties: Some measures can expose non-U.S. persons to sanctions risk, including measures involving significant transactions with designated sectors or parties. That is distinct from the direct prohibitions that apply to U.S. persons.
Technology and online services: some are authorized, not all
Under 31 CFR 560.540, as amended on May 17, 2024, certain communications-related services, software, cloud services, and listed hardware may be authorized if the regulatory criteria are satisfied. The categories include messaging, chat and email; social networking; photo and video sharing; web browsing and blogging; collaboration and video conferencing; e-gaming and e-learning; automated translation; web maps; user authentication; and related cloud services. This is an illustrative range, not permission for every product that uses the internet.
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A service or software product need not appear by name on the illustrative list if it otherwise meets the regulation. Qualifying software must satisfy the applicable export-control criteria; its functionality, classification, and intended transaction matter.
Cloud services and customers serving users in Iran
OFAC says a cloud provider whose non-Iranian customer uses its infrastructure to provide services or software to people in Iran may rely on 31 CFR 560.540 only after due diligence based on information ordinarily available to it. The provider should confirm that its customer is not a blocked person, subject to the regulation’s stated authorized case, and that the customer’s offering fits a category described in OFAC FAQ 1087, including activity otherwise authorized or exempt under the ITSR. OFAC says it generally does not expect a provider that has performed this ordinary-course diligence to evaluate the ultimate end use or end user.
The authorization has important boundaries. OFAC FAQ 1087 states that the cloud authorization does not cover services or software to the Government of Iran, except as specified in paragraph (a)(6) of the regulation. General licenses summarized in OFAC’s Iran FAQ material also do not authorize exports to blocked persons under other OFAC authorities unless another authorization applies.
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The regulation also covers certain communications hardware and peripherals, subject to its conditions. OFAC’s May 2024 explanation describes an application-performance threshold that excludes laptops, tablets, and personal computing devices above 1 Weighted TeraFLOP (WT). Certain accessories and peripherals may qualify; hardware parts and components generally are not authorized for export to Iran under this provision. The threshold and product descriptions are regulatory criteria, not a blanket approval for consumer electronics.
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Trade and humanitarian goods: check the particular authorization
U.S. sanctions regulate transactions and exports involving Iran; they are not simply a consumer-facing list of imports. OFAC provides licensing information for agricultural commodities, medicine, and medical devices, and publishes licenses for particular humanitarian transactions. Some humanitarian activity may be allowed under specific regulatory provisions or licenses, but the category alone does not establish that a transaction is authorized.
Before relying on a humanitarian authorization, match the transaction to its exact scope and conditions. Check the goods and services, parties, financial institutions, payment route, and any restrictions on use or delivery. Screening the end user and any intermediaries is important because a permitted category of goods does not itself clear a blocked counterparty.
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Financial services and payments can raise separate issues
Financial-sector restrictions can apply independently of whether a related good or service appears to be allowed. OFAC identifies certain significant transactions involving goods, services, hardware, software, or upgrades used in Iran’s financial sector as potentially sanctionable. Its examples include new hardware or software and related services for Iranian financial institutions sanctioned under Executive Order 13902, and financial services for transactions other than permitted ones. OFAC has also cautioned that it may issue additional guidance.
General License L provides a limited connection between the ITSR and certain Iranian financial institutions blocked under Executive Order 13902: it extends to those institutions transactions and activities that are authorized, exempt, or otherwise not prohibited under the ITSR. It is not a general permission to transact with Iranian banks.
OFAC also describes General License B for certain noncommercial personal remittances processed by U.S. depository institutions or registered securities brokers or dealers. Its conditions include blocked-party and routing limits, including processing through a third country. Because the operative rules and facts can change, do not treat that description as payment instructions; verify the current regulation and OFAC guidance before acting.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.General licenses, specific licenses, and exemptions are different
An OFAC license authorizes transactions that otherwise would be prohibited by sanctions administered by OFAC. A general license is public and self-executing: a person may rely on it only if the transaction fits all of its terms and conditions. A specific license is issued by OFAC to a particular applicant for a particular transaction or set of transactions. An exemption is a separate legal basis under the applicable authority; it should not be assumed to cover related activity outside its scope.
In each case, read the operative text, not just a headline or summary. Confirm who may participate, what activity is covered, relevant exclusions, effective dates, and any reporting or recordkeeping duties. A license that covers a service, for example, may not also cover a blocked party, a separate export, or the way funds are routed.
Current changes to check before relying on a rule
As listed on OFAC’s Iran sanctions page on October 4, 2026, General Licenses F and G were suspended effective August 24, 2026, and General License J-1 was suspended effective September 8, 2026. The page also listed sector determinations effective August 24, 2026 for aviation, digital assets, gold, shipping, and technology, and determinations for automotive and rail sectors effective October 1, 2026.
Those page listings are currentness markers, not a complete explanation of each measure’s legal effect. Before relying on any license or determination, consult the linked notice and operative regulation for its scope, exceptions, and effective date. Sanctions can change, so recheck OFAC’s current Iran program materials close to the date of the transaction.
Quick Recap
A practical review before a transaction
- Identify every party. Establish where each party is organized or located, whether any is a U.S. person, and whether a party is blocked under an applicable program.
- Describe the activity precisely. Specify whether it involves a good, service, software, technology, export, reexport, transfer, payment, or other transaction.
- Check classification and use. For technology and goods, establish relevant export-control classifications and identify the destination, end user, end use, and any Government of Iran involvement.
- Trace the money and intermediaries. Identify banks, payment processors, and routing jurisdictions, then assess any financial-sector or blocked-institution restrictions.
- Match the transaction to an authorization. Read the exact regulation, exemption, or license and check its conditions, exclusions, effective status, reporting, and recordkeeping requirements.
- Get case-specific guidance if needed. Consult OFAC’s current Iran sanctions materials, its compliance hotline or interpretive-guidance route, and qualified sanctions counsel when the answer is not clear.
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