In a move signaling renewed U.S. pressure on Iran’s energy sector, a group of Republican lawmakers led by Rep. August Pfluger (R-TX) introduced H.R. 2574, titled the “No Iranian Energy Act”, to the House of Representatives on April 1, 2025. The bill targets the importation of natural gas from Iran by the Government of Iraq and proposes an expansion of existing U.S. sanctions to include Iran’s developing natural gas industry.
According to the full bill text published on Congress.gov, H.R. 2574 seeks to amend sections of the Iran Freedom and Counter-Proliferation Act of 2012 to explicitly apply sanctions to the sale, supply, or transfer of natural gas to or from Iran, alongside existing restrictions on crude oil and petrochemical transactions.
The proposed legislation declares it is the “sense of Congress” that Iran’s emerging gas industry should now be a direct target of U.S. sanctions. The bill comes amid growing bipartisan concerns in Washington over Tehran’s increasing energy ties with neighboring countries, particularly Iraq.
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Under the new measure, any entity found engaging in natural gas transactions with the Iranian regime—including state actors like the Iraqi government—would be exposed to punitive sanctions. The legislation reaffirms Congress’s broader strategy of isolating Iran’s energy sector, which remains a critical source of revenue for the clerical regime.
The bill is a complement to previous congressional actions and emphasizes its inclusion of gas, which was previously not explicitly covered by some sanctions statutes.
Critics argue that the proposed legislation, if enacted, could strain Iraq’s energy security and disrupt the country’s longstanding energy ties with the Iranian regime. The measure also raises concerns about broader regional stability, as it seeks to penalize cross-border gas trade that has so far operated under U.S.-issued sanctions waivers and informal arrangements.
#Iran News: U.S. House Resolution 176 Calls for EU to Designate #IRGC as a Terrorist Organizationhttps://t.co/OLqam9EZ2T
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The bill has been referred to multiple House committees, including Foreign Affairs, Financial Services, Ways and Means, and Judiciary, indicating its broad implications for both foreign policy and economic regulation. It is currently in the “Introduced” stage and has yet to be voted on.
If passed, H.R. 2574 could significantly curtail Iran’s natural gas export ambitions—especially to Iraq, which remains a key energy client—and increase Tehran’s economic isolation at a time when its energy infrastructure is attempting recovery amid sanctions and domestic unrest.