It’s not every day that a trip to the local Costco becomes a matter of international diplomacy. But as world leaders converge on New York for the United Nations General Assembly this September, Iranian diplomats are finding their shopping habits unexpectedly thrust into the global spotlight. In a move that has sparked debate and drawn attention from media outlets around the world, the Trump administration has imposed sweeping new restrictions on Iranian diplomats’ ability to shop at U.S. wholesale club stores and purchase luxury items—without explicit government permission.
According to the Associated Press, the directive, signed by Clifton Seagroves, head of the State Department’s Office of Foreign Missions, on September 16 and 18, 2025, and posted online September 22, bars Iranian diplomats based in or visiting New York from shopping at popular wholesale clubs such as Costco, Sam’s Club, and BJ’s Wholesale Club. The rules don’t stop at the warehouse doors: Iranian diplomats and their dependents must now obtain prior approval from the U.S. State Department not only before acquiring or retaining memberships at these clubs, but also before purchasing any items from them—by any means.
Why target Costco and similar retailers? As Newsweek reports, these stores have long been a favorite among Iranian diplomats posted to or visiting New York. The appeal is clear: diplomats have been able to buy large quantities of products—often unavailable or prohibitively expensive in economically isolated Iran—at relatively low prices, and sometimes send them home. The new rules, however, aim to put a stop to what the administration characterizes as an exploitation of diplomatic travel for personal or regime benefit.
The restrictions go further than just club memberships. The State Department has also determined that the ability to buy luxury goods—watches, furs, jewelry, handbags, wallets, perfumes, tobacco, alcohol, and even cars—constitutes a “benefit” requiring U.S. government approval. The luxury goods category is sweeping, encompassing items valued at more than $1,000 and vehicles costing more than $60,000. The list includes, but is not limited to, watches, leather and silk apparel, footwear, fur skins and artificial furs, handbags, wallets, fountain pens, cosmetics, works of art, antiques, carpets, rugs, tapestries, pearls, gems, precious and semi-precious stones or jewelry containing them, precious metals, electronics, appliances, recreational sports articles, musical instruments, cigarettes, cigars, wine, spirits, and beer.
“By preventing Iranian regime officials from exploiting diplomatic travel to the UN as a means to obtain goods unavailable to the Iranian public, we are sending a clear message: When the United States says it stands with the people of Iran, we mean it. Today’s actions affirms the United States’ unwavering commitment to supporting the Iranian people in their pursuit of accountability for the regime and for a better life,” the State Department declared in a press release, as reported by NewsNation.
The timing of the measure is no coincidence. The annual U.N. General Assembly is a high-profile event, drawing dignitaries and diplomats from around the globe to Manhattan. But the new restrictions are not a temporary measure—they apply permanently to any Iranian diplomats representing their country at the United Nations, year-round, according to the South China Morning Post. The move is part of a broader crackdown on visas and diplomatic privileges under the Trump administration, which has also denied visas to Palestinian leader Mahmoud Abbas and his delegation, and is considering similar restrictions for delegations from Sudan, Zimbabwe, and Brazil.
The new shopping ban singles out Iran exclusively, even as existing travel limitations affect diplomats from multiple sanctioned nations. Iranian diplomats already face a 25-mile travel radius restriction from Columbus Circle in Manhattan—a rule that also applies to diplomats from countries like Cuba and Venezuela, as detailed by Newsweek. The shopping restrictions add another layer to these limitations, further tightening the circle around Iranian representatives in the U.S.
The Office of Foreign Missions made it clear in the Federal Register notices that Iranian diplomats and their dependents must “obtain approval from the Department of State prior to: obtaining or otherwise retaining membership at any wholesale club store in the United States, to include but not limited to Costco, Sam’s Club, or BJ’s Wholesale Club, and acquiring items from such wholesale club stores through any means.” The determinations, posted online on September 22 and scheduled for publication on September 23, are intended to be permanent and enforceable, with the administration signaling a willingness to extend similar rules to other foreign diplomats in the future.
For Iranian diplomats and their families, the implications are immediate and practical. No more spontaneous runs to stock up on bulk goods or luxury treats. Every purchase of a high-end item or even a club membership now requires a bureaucratic green light. The list of luxury goods is so exhaustive that it covers nearly every conceivable item that might be considered a status symbol or rarity in Iran, from musical instruments to oriental rugs. The administration’s rationale, as articulated by the State Department, is that these privileges should not be enjoyed by regime elites while ordinary Iranians endure economic hardship, crumbling infrastructure, and shortages of basic necessities.
“We will not allow the Iranian regime to allow its clerical elites to have a shopping spree in New York while the Iranian people endure poverty, crumbling infrastructure, and dire shortages of water and electricity,” the State Department’s statement reads, as cited by the Associated Press.
According to Bloomberg, the restrictions were outlined in a document posted to the Federal Register website and marked for publication on September 23, 2025. The rules apply not only to diplomats themselves but also to those traveling with them for the U.N.’s marquee event. The move is seen as another escalation in the Trump administration’s pressure campaign against Iran, coinciding with the resumption of U.N. sanctions following actions by Britain, France, and Germany in response to Tehran’s limited cooperation with international nuclear inspectors.
While the administration frames the move as a show of solidarity with the Iranian people, critics may see it as further politicization of diplomatic norms or an attempt to isolate Iran on the world stage. The fact that only Iran is singled out for these shopping restrictions, despite the existence of similar sanctions regimes for other countries, has not gone unnoticed.
As the story continues to unfold, one thing is certain: the intersection of diplomacy and day-to-day life can be unexpectedly dramatic. For Iranian diplomats in New York, even a simple shopping trip now requires a State Department stamp of approval—a reminder that, in the world of international politics, nothing is ever quite as simple as it seems.