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Iran Diplomats' Costco Rights Get a Hard Check From the Feds

US bars Iranian envoys from shopping at wholesale stores without permission
By Newser Editors and Wire Services
Posted Sep 23, 2025 9:55 AM CDT
Bad News, Iranian Diplomats: No More Costco for You
The UN flag flies on a stormy day at the United Nations during the United Nations General Assembly on Sept. 22, 2022.   (AP Photo/Ted Shaffrey, File)

The Trump administration has barred Iranian diplomats based in or visiting New York from shopping at wholesale club stores like Costco and purchasing luxury goods in the United States without specific permission from the State Department. "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 department said in a statement, per the AP.

In notices to be published this week in the Federal Register, the department's Office of Foreign Missions determined that diplomatic memberships in wholesale club stores—as well as diplomats' ability to buy items such as watches, furs, jewelry, handbags, wallets, perfumes, tobacco, alcohol, and cars—are a "benefit" requiring US government approval. However, the only country whose diplomats were specifically targeted is Iran. Stores like Costco have been a favorite of Iranian diplomats posted to and visiting New York because they're able to buy large quantities of products not available in their economically isolated country for relatively cheap prices and send them home.

"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," the State Department said. The move is another step in the Trump administration's crackdown on visas, including for leaders and diplomats seeking to serve as representatives at the United Nations. While world leaders are gathering this week for the high-profile annual meeting at the international body, the new US restrictions permanently apply to any Iranian diplomats representing their country at the UN year-round.

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The determinations, which were posted online Monday and to be printed Tuesday, said 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." In addition, Iranian diplomats in the US 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, head of the Office of Foreign Missions.

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