In a move that has stirred diplomatic waters and drawn sharp lines between global politics and everyday commerce, the United States White House announced on September 23, 2025, that Iranian diplomats and officials in New York for the United Nations General Assembly (UNGA) are now banned from shopping at wholesale club stores such as Costco, Sam’s Club, and BJ’s Wholesale Club, or purchasing luxury goods, without explicit US government approval. The decision, which comes as over 150 heads of state and their entourages descend on New York City for the UN’s marquee event, was made public through a notice scheduled for publication in the Federal Register and has since reverberated through diplomatic circles.
According to Bloomberg, the State Department’s new restrictions require that all Iranians and those traveling with them for the UNGA must obtain special permission from US authorities before they can shop at these wholesale giants. The ban extends to luxury items—a broad category that includes jewelry, furs, perfumes, watches, designer clothing, and artwork—if the price tag exceeds $1,000. Even vehicle purchases are subject to scrutiny, with any car valued above $60,000 needing prior approval from the US government.
State Department spokesperson Tommy Pigott was unequivocal in his rationale for the move. “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,” Pigott said in a statement, as reported by Bloomberg and TNND. The message was clear: while Iranian leaders are in the US for international diplomacy, they will not be permitted to stock up on goods and luxuries that are out of reach for the average citizen back home.
This isn’t the first time Iranian diplomats have faced restrictions on US soil. For years, officials from sanctioned nations—including Iran, Cuba, and Venezuela—have been required to remain within a 25-mile radius of Columbus Circle in Manhattan, limiting their movement to only what is necessary to conduct official UN business. Secretary of State Marco Rubio reinforced these travel limitations, making it clear that the Iranian delegation’s activities would be closely monitored and confined to the bare essentials of their diplomatic mission.
The timing of the announcement is no coincidence. The UN General Assembly is a high-profile event, drawing global attention not just to the speeches and negotiations, but also to the behavior and privileges of those who attend. The US government’s move comes as UN sanctions on Iran, which had been paused under the 2015 nuclear deal, are set to resume before the end of September 2025. The so-called "snapback" mechanism was triggered by the UK, France, and Germany, citing Iran’s limited cooperation with the International Atomic Energy Agency (IAEA) and broader nonproliferation talks.
For the Trump administration, which has been vocal about its hardline stance on Iran, these new shopping restrictions are as much about symbolism as they are about security. “The security of Americans is always our priority, and the United States will not allow the Iranian regime to use UNGA as an excuse to travel freely in New York to promote its terrorist agenda,” Pigott stated, according to TNND. The administration is keen to prevent what it sees as the exploitation of diplomatic travel privileges for personal or regime gain, especially when it comes to goods that are often unavailable or prohibitively expensive in Iran due to longstanding sanctions.
Wholesale clubs like Costco and Sam’s Club offer bulk goods and luxury items at prices far below what might be found elsewhere—an attractive proposition for visitors from countries where such items are either scarce or heavily taxed. The State Department’s concern, as outlined in the Federal Register notice, is not just that Iranian officials might indulge in personal shopping, but that they could send these goods back to Iran, circumventing sanctions and undermining the intended economic pressure on the regime.
“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,” Pigott emphasized in his statement. He further added, “Today’s actions affirm the United States’ unwavering commitment to supporting the Iranian people in their pursuit of accountability for the regime and for a better life.”
The restrictions apply not only to the diplomats themselves but also to anyone traveling with them for the UNGA, ensuring there are no loopholes for friends or family members to act as proxies in luxury shopping sprees. The US government’s approach is both broad and targeted, seeking to prevent any appearance of privilege among Iranian officials while ordinary Iranians continue to struggle under the weight of economic hardship.
The reaction from Iran’s delegation has been predictably muted in public, but diplomatic sources suggest frustration at what they see as an unnecessary and humiliating escalation. The move singles out Iran uniquely among sanctioned states, as the shopping ban is not being applied to other countries with similar travel restrictions. This has led some observers to question whether the decision is more about making a political statement than addressing any real security concern.
Meanwhile, the broader context cannot be ignored. The resumption of UN penalties, the ongoing standoff over Iran’s nuclear program, and the persistent tension between Washington and Tehran all form the backdrop to this latest policy. The United States has long argued that economic pressure is a key tool in persuading the Iranian regime to change its behavior, particularly on issues of nuclear development and regional security.
Yet, for all the high-level rhetoric and diplomatic maneuvering, the image of Iranian officials being turned away at the entrance to a Costco or denied the chance to purchase a luxury watch in Midtown Manhattan is a striking one. It’s a reminder that, in international relations, even the most mundane of activities—shopping for groceries or gifts—can become a flashpoint for larger ideological battles.
With the UN General Assembly underway and the world’s attention fixed on New York, the US government’s message is unmistakable: privileges enjoyed by diplomats are not to be abused, especially when they stand in stark contrast to the hardships faced by the people they represent. As the month draws to a close and sanctions snap back into place, the fate of Iran’s relationship with the West—and the everyday freedoms of its officials abroad—remains uncertain.
For now, Iranian diplomats in New York will have to make do without the bargains and luxuries that wholesale clubs offer, their movements and purchases watched closely as a matter of both principle and policy.