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Why the US is barring Iranian diplomats from shopping at Costco

September 23, 2025
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Why the US is barring Iranian diplomats from shopping at Costco
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Costco at 8:56 a.m.
Costco at 8:56 a.m.

Talia Lakritz/Business Insider

  • The US State Department issued new restrictions on Iran ahead of the UN’s annual meeting in New York.
  • Representatives of Iran are barred from joining or shopping at wholesale clubs, including Costco.
  • The US says club stores are a “benefit” that it may allow (or withhold) for diplomatic missions.

While there is much that Iran’s delegation to the United Nations can do to enjoy New York City this week during the international organization’s annual meeting, one place is officially off-limits: Costco.

The US State Department said Monday that wholesale clubs are a “benefit” that the US may allow or withhold for diplomatic missions on US soil.

A separate order says that Iranian representatives must get approval from the State Department before “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.”

The order goes further to prohibit the purchase of luxury goods — valued at $1,000 — including watches, apparel, accessories, electronics, or alcohol, or vehicles costing more than $60,000.

Iran is the only subject identified in the order.

Wholesale clubs have been popular with Iranian diplomats, who have previously used their special access to the US to buy products they are otherwise unable to access in the economically isolated country, the Associated Press reported.

Indeed, during the week of the UN General Assembly in past years, diplomatic staff have been spotted shopping in New York between official meetings and speeches.

Costco has a warehouse store about 4 miles north of the UN headquarters.

The State Department’s orders do not say whether Iranians are barred from shopping at one of Costco’s or Sam’s Club’s international locations.

Read the original article on Business Insider

The post Why the US is barring Iranian diplomats from shopping at Costco appeared first on Business Insider.

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