US bars Iran's diplomats from shopping at Costco without permission

WASHINGTON — The Trump administration on Monday barred Iranian diplomats based in New York or visiting the city from shopping at wholesale club stores such as Costco without explicit permission from the State Department. In notices to be published this week in the Federal Register, the State Department’s Office of Foreign Missions said diplomatic memberships in wholesale clubs and the ability to buy items including watches, furs, jewelry, handbags, wallets, perfumes, tobacco, alcohol and cars are a “benefit” that requires government approval. The notices show the measures apply specifically to Iran, reflecting a broader push to tighten access to privileges and means of commerce for Iranian officials connected to the U.N. and to the United States.

Under the determinations, Iranian diplomats and their dependents must obtain approval from the Department of State prior to obtaining or 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. In addition, Iranian diplomats in the United States must also receive permission to purchase luxury items valued at more than $1,000 and vehicles valued at more than $60,000, said Clifton Seagroves, the head of the Office of Foreign Missions. The items defined as “luxury goods” include watches, leather apparel and clothing accessories, silk apparel and clothing accessories, footwear, fur skins and artificial furs, handbags, wallets, fountain pens, cosmetics, perfumes and toilet waters, works of art, antiques, carpets, rugs, tapestries, pearls, gems, precious and semi-precious stones or jewelry containing them, precious metals, electronics and appliances, recreational sports articles, musical instruments, cigarettes and cigars, wine, spirits and beer.

Earlier this month, U.S. officials said they were considering the restrictions, which Seagroves signed on Sept. 16 and 18. The Trump administration has already denied visas for Palestinian Authority President Mahmoud Abbas and his large delegation to attend the U.N. General Assembly. In addition to Iran, the administration was weighing restrictions on delegations from Sudan, Zimbabwe and Brazil as part of a broader review of diplomatic access linked to U.N. affairs. The move is part of a broader effort to tighten visa and entry-state controls for diplomats connected to the United Nations, particularly those from Iran, amid ongoing U.S. concerns over its behavior and support networks.

Advocates and officials said the new rules tighten the range of benefits Iranian diplomats can exercise while stationed in the United States, including access to American consumer markets and the ability to ferry large quantities of goods back to Tehran. Proponents of the policy argue that it closes loopholes that could help circumvent sanctions and complicate enforcement efforts. Critics, however, cautioned that such measures could complicate normal diplomatic workflows and risk escalating tensions during a period when global leaders are convening in New York for the annual U.N. gathering.

The federal actions provide a formal, year-round constraint on a subset of privileges that Iranian officials have historically leveraged in New York, where many diplomats and staff live and maintain routines that intersect with commerce in the metropolitan area. By requiring Department of State approval for wholesale memberships and the purchase of luxury goods and vehicles, Washington aims to ensure that any access to costly goods or large memberships is explicitly vetted and documented. The policy is designed to apply to Iranian diplomats representing their government at the U.N. on an ongoing basis, not only during visits tied to the General Assembly schedule.

The notices also reflect the administration’s ongoing effort to manage diplomacy at the United Nations through stricter visa and entry controls. While the U.N. serves as a forum for international diplomacy, the United States continues to use broad and targeted measures to shape which foreign officials can participate in U.S. events and access U.S. commerce. In recent weeks, the administration has signaled that additional delegations could face new scrutiny, further underscoring a broader shift in Washington’s approach to diplomacy tied to Iran and other countries.

diplomats and their dependents must obtain approval from the Department of State prior to obtaining or 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. In addition, Iranian diplomats in the U.S. must also receive permission to purchase luxury items valued at more than $1,000 and vehicles valued at more that $60,000, said Clifton Seagroves, the head of the Office of Foreign Missions. The items defined as “luxury goods” include watches, leather apparel and clothing accessories, silk apparel and clothing accessories, footwear, fur skins and artificial furs, handbags, wallets, fountain pens, cosmetics, perfumes and toilet waters, works of art, antiques, carpets, rugs, tapestries, pearls, gems, precious and semi-precious stones or jewelry containing them, precious metals, electronics and appliances, recreational sports articles, musical instruments, cigarettes and cigars, wine, spirits and beer.

The measures come as the United States continues to navigate tense relations with Tehran and to monitor Iran’s activities on the global stage. The actions are part of a broader policy framework in which Washington seeks to exert greater oversight of diplomatic privileges that could be used to facilitate economic transactions or procurement that might run afoul of sanctions or other restrictions. As the United Nations convenes for its annual gathering, officials stressed that the intent is to ensure transparent, verifiable compliance with U.S. laws and policies, while maintaining channels for diplomacy where possible.

The administration has emphasized that the measures are targeted and selective, focusing on specific categories of goods and privileges rather than broad, indiscriminate restrictions. Nevertheless, the approach signals a willingness to adjust the terms of diplomatic engagement in response to perceived threats or violations of U.S. policy. For Iranian diplomats serving in New York, the new rules add another layer of administration to a complex and often contentious relationship between Tehran and Washington, a relationship that has long played out against the backdrop of the United Nations and the global community that gathers there each year.