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1 September 2026

How New US Sanctions Are Impacting Iran’s Education Sector

The latest US sanctions on Iran are causing significant disruptions in the education sector, particularly affecting students seeking to study abroad.

How New US Sanctions Are Impacting Iran's Education Sector

The United States has intensified its economic pressure on Iran with a new wave of sanctions, targeting key sectors including education. These measures, part of Operation Economic Outcast aim to cripple Iran’s economy and coerce behavioral changes from the Iranian government and the Islamic Revolutionary Guard Corps (IRGC). However, the sanctions are having a profound impact on the civilian population, particularly students.

The latest sanctions expand secondary measures in critical sectors such as aviation, digital assets, gold, shipping, and technology. These sectors join a comprehensive list that includes financial services, construction, and manufacturing. The sanctions impose asset freezes and effectively quarantine Iran from US-linked and global commerce, impacting civilian life, including the availability of some medicines and medical equipment.

The Education Sector Under Fire

The Office of Foreign Assets Control (OFAC) of the US Treasury has indefinitely suspended education-related general licenses. These licenses previously permitted limited cooperation with Iran by American universities and individuals, including academic exchange programs and certain nonprofit education services. The suspension also affects services supporting professional and amateur sports activities and exchanges involving Iran.

Another suspension targets services related to conferences in the US or third parties, while OFAC also suspended permissions for certain non-commercial, personal remittances to or from people in Iran. A very short wind-down period has been set for existing activities in all these areas until September 8, after which activities will require specific OFAC authorization.

Impact on Language Tests and Educational Opportunities

As part of its latest economic measures, the US has contacted Iran’s neighbors to limit trade, targeted the operations of Egypt’s second-biggest bank in the United Arab Emirates, and is considering action against another bank. The stated goal of the operation is to sever every economic lifeline sustaining Iran’s government and the IRGC.

The suspension of General License G, which permitted education-related activities, is already impacting thousands of young Iranians who have no links to the government. The Educational Testing Service (ETS), which holds TOEFL and GRE language exams required for admission to thousands of universities worldwide, has paused the administration of these tests in Iran and canceled previously booked test appointments.

ETS stated that this step reflects its full compliance with US sanctions law, adding that Iranian nationals can test outside of Iran. The organization is actively working to understand the scope and duration of this change and pursue any available paths to resume service, allowing learners to continue their educational journey uninterrupted.

Duolingo’s Response and Broader Implications

Duolingo, the American educational technology company that offers learning apps and language certifications, has taken a more stringent approach. The company has banned English language tests for all users holding only an Iranian ID, meaning that Iranian passport holders outside the country would also be rejected. This decision follows an August 24 action by the US Treasury Department, requiring Duolingo to stop offering the Duolingo English Test to people testing in Iran or using Iranian government-issued identification beginning September 1.

Duolingo acknowledged that changes to test availability can be disappointing for affected test takers. The company has contacted those with active credits directly about completing their tests or receiving refunds. However, Duolingo stated that it does not know whether or when the regulations may change and would reassess the test’s availability if circumstances changed.

Over recent days, many Iranians who were planning to obtain language certificates—whether to leave Iran, participate in international scholarships and research, or seek better employment—have been left in limbo. The broader implications of these sanctions on the education sector and the broader economy remain significant, with students and professionals facing unprecedented challenges.

Author

Sophie Donovan

Sophie Donovan, Manchester-born and classically elegant, once turned down a commission to chase a long-form piece on Salford’s textile heritage, filing instead from the mill where her grandmother worked. Advocates patient, context-rich features and brings a taste for quiet narrative detail and theatre aficionadoship.