Iran Conflict 2026: Employer Guide to Immigration Compliance

The 2026 Iran conflict has created the most restrictive immigration environment for Iranian nationals in modern U.S. history. For employers sponsoring or employing Iranian-born workers on H-1B, L-1, O-1, or other visa categories, the convergence of an expanded travel ban, a USCIS adjudication hold, and the collapse of consular services across the Middle East means that nearly every immigration pathway is blocked or delayed indefinitely. This guide provides a general overview of what has changed, what employer obligations and prohibitions apply, and how the situation may affect workforce and compliance planning as events continue to develop in 2026.

Key Takeaways

Iranian nationals face four overlapping restrictions: a full travel ban (Presidential Proclamation 10949/10998), an indefinite USCIS processing hold on benefit adjudications, a 75-country immigrant visa pause, and physical shutdown of consular posts across the Middle East.
The USCIS processing hold applies by country of birth or citizenship, meaning even dual nationals born in Iran or holding Iranian citizenship are affected across all benefit types, including H-1B extensions, EAD renewals, Adjustment of Status, and naturalization.
Neither Temporary Protected Status (TPS) or Deferred Enforced Departure (DED) have been designated for Iran despite active armed conflict, leaving no automatic work authorization safety net.
OFAC sanctions do not prohibit employing Iranian nationals who hold valid U.S. work authorization and reside in the United States, but SDN list screening remains mandatory.
Anti-discrimination obligations are heightened during conflict periods, and employers face liability under both Title VII and the INA's anti-discrimination provision (8 U.S.C. § 1324b) for national-origin-based adverse actions.
Re-entry is functionally impossible for Iranian nationals who travel outside the United States under current restrictions.

The 2026 Iran Conflict: What Changed for U.S. Immigration

While Iran was already subject to severe immigration restrictions before the conflict began, the military operations that started on February 28, 2026 have compounded every existing barrier. Understanding each restriction layer is essential because they interact in ways that close off workarounds that might otherwise be available.

The Expanded Travel Ban (Presidential Proclamations 10949 and 10998)

Presidential Proclamation 10949, signed June 4, 2025, and effective June 9, 2025, suspended all immigrant and nonimmigrant visa issuance for Iranian nationals. This was the broadest travel restriction ever applied to Iran, going further than the 2017 travel ban upheld in Trump v. Hawaii, 585 U.S. 667 (2018), by eliminating the student visa exception for the first time. F, M, and J visas are now barred alongside all other categories.

Presidential Proclamation 10998, signed December 16, 2025, and effective January 1, 2026, expanded the ban further by removing categorical exceptions for immediate family immigrant visas and adoption visas. Spouses (IR-1/CR-1), minor children (IR-2/CR-2), parents (IR-5), and adoption categories (IR-3/IR-4/IH-3/IH-4) of American citizens who are Iranian nationals can no longer obtain visas through the family exemption that existed under prior versions. The Afghan Special Immigrant Visa exception was also removed. Remaining exceptions include persecuted ethnic and religious minorities in Iran (the proclamation does not enumerate specific groups), certain diplomats, lawful permanent residents, dual nationals traveling on a non-designated passport, Special Immigrant Visa holders under 8 U.S.C. § 1101(a)(27)(D) who worked for the U.S. government, athletes competing in the World Cup or Olympics, and extraordinarily rare case-by-case national interest waivers.

What this means for employers: No new visa stamps can be issued to Iranian nationals at any U.S. consulate worldwide. Employees currently inside the U.S. on valid status can maintain that status, but any departure from the country means they cannot obtain a new visa to return. This applies even to employees with approved H-1B or L-1 petitions who simply need a new stamp. The travel ban functions as an absolute bar on international travel for all Iranian-born employees, affecting business travel, conference attendance, and relocation plans.

The USCIS Processing Hold on Benefit Adjudications

USCIS Policy Memorandum PM-602-0194, effective January 1, 2026, imposed an indefinite hold on final adjudication decisions for all pending and future immigration benefit requests filed by nationals of 39 countries, including Iran. USCIS may continue to process affected applications during the hold period, but final decisions are deferred until the hold is lifted or modified. The hold covers virtually every benefit type that USCIS adjudicates, including but not limited to:

Form I-129
Form I-140
Form I-485
Form I-765
Form I-131
Form N-400
Form I-539

The hold is based on country of birth or country of citizenship, as stated in PM-602-0194. An Iranian-born individual who is now a citizen of Canada, the United Kingdom, or any other country remains subject to the hold, as does a non-Iranian-born individual who holds Iranian citizenship. USCIS has also ordered a re-review of all immigration benefits approved on or after January 20, 2021 for nationals of affected countries, meaning previously approved cases may be reopened and potentially revoked.

What this means for employers: Extension petitions filed for Iranian-born or Iranian-citizen employees will not receive final adjudication on any predictable timeline. Premium processing fees may still be accepted, but the policy hold appears to override the 15-business-day adjudication commitment that applies to I-129 petitions (note: the 45-business-day premium processing window applies only to I-140 petitions in the EB-1C and EB-2 NIW categories, not to I-129 nonimmigrant petitions). Current USCIS processing times for all form types are published at Case Processing Times, though the processing hold creates uncertainty beyond standard timelines.

Consular Service Shutdowns Across the Middle East

The military conflict itself has shut down or severely curtailed U.S. consular operations at virtually every post where Iranian nationals could historically access visa services. The U.S. Embassy in Kuwait has closed entirely. Posts in Bahrain, Iraq, Lebanon, and Israel have suspended routine consular services and are operating in emergency-only mode. Services in the UAE, Qatar, Jordan, and Saudi Arabia are suspended or operating in emergency-only mode as well. The historically designated processing posts for Iranian nationals, including Abu Dhabi, Ankara, Dubai, and Yerevan, are all operating under wartime constraints with no routine visa services.

What this means for employers: Even in a hypothetical scenario where the travel ban were lifted, there is no consular infrastructure currently capable of processing visas for Iranian nationals. Consular processing as a Green Card pathway is blocked by both legal restriction and physical impossibility.

The combination of travel ban, processing hold, and consular shutdowns means every immigration pathway for Iranian-born employees is frozen, with no announced end date.

Employer Compliance Obligations: What the Law Requires and Prohibits

The legal environment creates a paradox: employers must comply with OFAC sanctions, export control regulations, and heightened security requirements while simultaneously ensuring they do not discriminate against Iranian employees based on national origin. Exposure exists on both sides of this equation.

I-9 Verification: Uniform Rules Apply

The Form I-9 process requires employers to verify employment eligibility for all new hires, but the rules apply uniformly regardless of an employee's country of birth. Employers cannot request specific documents from Iranian nationals that are not required of other employees, cannot reject valid documentation that reasonably appears genuine on its face, and cannot subject Iranian-born employees to additional scrutiny, extended verification timelines, or re-verification procedures that do not apply equally to all workers.

I-9 compliance points during the conflict:

The same document rules apply to everyone. Employees choose which acceptable documents to present from the official lists.
Valid unexpired documents remain valid regardless of nationality. An unexpired EAD or valid H-1B approval notice is a valid I-9 document regardless of the holder's national origin.
Re-verification timing must be uniform. Re-verifying only Iranian employees while not doing so for other employees with the same document types constitutes differential treatment.
ITAR/EAR export control verification must remain separate. For employers with export control obligations, citizenship verification for export control purposes is conducted through a process that is completely separate from I-9 verification. Commingling these processes creates discrimination liability.

E-Verify Tentative Nonconfirmations (TNCs) disproportionately affect employees with Persian names due to transliteration inconsistencies between identity documents and government databases. If an Iranian-born employee receives a TNC, the employee has the right to contest it, and no adverse employment action may be taken during the resolution period.

OFAC Sanctions Screening: Required but Separate

The Iranian Transactions and Sanctions Regulations (ITSR) are among the most comprehensive U.S. sanctions programs. However, they do not prohibit employing Iranian nationals who are lawfully present in the United States with valid work authorization. Under 31 CFR § 560.505, Iranian nationals holding valid U.S. visas or immigration status are authorized to carry out the activities for which their status was granted. No specific OFAC license is required to hire, employ, or pay an Iranian national who is lawfully resident in the U.S., provided they are not acting as an agent or contractor of the Government of Iran or an Iranian business entity.

OFAC compliance obligations for employers:

SDN list screening applies to all employees. All new hires, not just Iranian nationals, are subject to screening against the Specially Designated Nationals (SDN) list. OFAC violations carry strict liability, meaning even unknowing violations can result in civil penalties of up to $377,700 per violation (2025 inflation-adjusted amount per Federal Register 90 FR 3688; or twice the transaction value, whichever is greater), or criminal penalties including fines up to $1 million and imprisonment of up to 20 years under 50 U.S.C. § 1705.
Salary payments to Iran are prohibited. If an employee requests wire transfers to Iranian banks, this likely triggers ITSR restrictions. Iranian employees are paid through normal U.S. banking and payroll channels.
The prohibition under 31 CFR § 560.419 applies to hiring individuals ordinarily resident in Iran, treating such employment as importation of a service from Iran. It does not apply to Iranian nationals living and working in the United States.
SDN screening must remain separate from I-9 processes. Running SDN checks is a legitimate compliance obligation, but it is applied equally to all employees and is not integrated into the I-9 workflow in a way that singles out employees by national origin.

Anti-Discrimination: Heightened Risk During Conflict

Both the DOJ Immigrant and Employee Rights Section (IER) under 8 U.S.C. § 1324b and the EEOC under Title VII of the Civil Rights Act prohibit national origin discrimination in all aspects of employment. Historical data shows that discrimination complaints involving Middle Eastern and Muslim employees spike significantly during periods of U.S. military conflict in the region.

Conduct that creates employer liability:

Terminating, reassigning, or reducing hours for Iranian-born employees based on their national origin, even if framed as a response to "security concerns" or "client preferences." Customer or co-worker discomfort is not a lawful basis for adverse employment action.
Subjecting Iranian employees to increased monitoring, access restrictions, or security reviews that are not applied to all employees in equivalent roles.
Failing to address workplace harassment. In some jurisdictions, a single sufficiently severe incident, such as an ethnic slur by a supervisor, a physical threat, or a hostile display, may be enough to establish a hostile work environment claim, though this standard varies by circuit. The EEOC applies a "severe or pervasive" standard.
Making assumptions about loyalty or security risk based on nationality. An Iranian-born U.S. permanent resident or visa holder has been vetted by DHS and is lawfully present. Employers do not have authority or obligation to conduct independent "loyalty" assessments.
Retaliating against employees who raise concerns about discriminatory treatment. Employees who complain about national origin harassment or discrimination are protected from retaliation under both Title VII and the INA, even if the underlying complaint is ultimately not sustained.

Practices commonly associated with reduced liability:

Issuing a company-wide reminder about anti-discrimination policies, specifically referencing national origin protections
Training hiring managers and HR personnel on the distinction between lawful compliance measures (SDN screening, export control verification) and unlawful discrimination (targeting employees based on Iranian origin)
Documenting all employment decisions affecting Iranian-born employees with clear, non-discriminatory business justifications
Ensuring that any security review processes triggered by government contracts or export control requirements are applied uniformly across all foreign-born employees, not selectively to those from conflict-zone countries

Employers with Iranian-born workers may benefit from consulting experienced immigration counsel to audit their I-9, OFAC, and anti-discrimination compliance. Contact Alma for a compliance consultation.

How the Conflict Affects Specific Visa Categories

Each visa category presents distinct challenges under the current restrictions. The common thread is that Iranian-born employees currently inside the United States face near-certain inability to return if they depart, and all renewals and extensions face indefinite processing delays.

H-1B, L-1, and O-1 Holders

Employees currently inside the U.S. on valid H-1B, L-1A/L-1B, or O-1 status maintain their lawful status until the current approval period expires. However, all extension petitions (Form I-129) are subject to the USCIS processing hold with no published end date. Key considerations:

I-129 extensions may be filed up to 6 months before the current status expires, maximizing the time available for processing.
Premium processing requests may still be filed where available. The premium processing commitment for I-129 petitions is 15 business days, though the policy hold may override this timeline. Note: the 45-business-day window applies only to certain I-140 immigrant petition categories (EB-1C and EB-2 NIW), not to I-129 nonimmigrant petitions.
International travel is not feasible under current conditions. Without the ability to obtain a new visa stamp at a consulate, departure from the U.S. means the employee cannot return, regardless of whether they hold a valid I-797 approval notice.
The 240-day rule: An H-1B or L-1 employee who timely files an extension with the same employer can continue working for up to 240 days beyond their status expiration while the extension is pending, per 8 CFR § 274a.12(b)(20). This authorization is limited to the same employer and does not permit job changes.

O-1 holders face particular complexity. The O-1A visa requires an agent or employer petitioner, and extensions are subject to the same processing hold. For Iranian-born O-1 holders considering a transition to employment-based Green Cards, the self-petition nature of the EB-2 NIW may offer potential advantages.

EB-2 NIW and Employment-Based Green Cards

The EB-2 National Interest Waiver has historically been the most popular Green Card pathway for Iranian nationals because it allows self-petitioning without employer sponsorship and EB-2 priority dates have generally been more favorable for Iran-born applicants than for applicants from high-demand countries such as India and China. The conflict affects this pathway at multiple stages:

I-140 petition filing: Petitions can still be filed and accepted by USCIS, but final adjudication decisions are deferred under the processing hold. Premium processing fees may be accepted, but the hold likely overrides the standard timeline. The premium processing commitment for I-140 EB-2 NIW petitions is 45 business days. Current USCIS processing times are published at Case Processing Times.

Adjustment of Status (I-485): Explicitly covered by the processing hold. Even if an I-140 were approved, the I-485 cannot be adjudicated. Concurrent filing (I-140 + I-485 filed at the same time) remains technically possible when priority dates are current, but neither petition will move forward under the current freeze.

Consular processing: Blocked by both the travel ban and the 75-country immigrant visa pause. Even if the I-140 were approved and the applicant chose consular processing, no consular post can currently issue an immigrant visa to an Iranian national.

A critical policy development: USCIS Policy Alert PA-2025-26, issued November 27, 2025, designated nationality from travel ban countries as a "significant negative factor" in discretionary benefit decisions, including I-485 adjustment of status and related applications. This affects all employment-based categories where USCIS exercises discretion, potentially adding an additional barrier even when the processing hold is eventually lifted.

Despite these obstacles, filing an I-140 petition establishes a priority date. When restrictions are eventually eased, having an approved or pending I-140 with an early priority date could be a significant advantage. The EB-2 NIW's self-petition structure also means the petition is not tied to a specific employer, providing flexibility that employer-sponsored categories like EB-2 PERM cannot offer.

Learn about Alma's EB-2 NIW petition preparation to get started.

EAD and Advance Parole

Employment Authorization Document (I-765): EAD applications and renewals are subject to the processing hold. For employees with pending adjustment of status who rely on EADs for work authorization, this creates a risk of a potential gap in work authorization. DHS published an Interim Final Rule on October 30, 2025 (Federal Register 2025-19702), eliminating the 540-day automatic EAD extension for renewal applications filed on or after that date. Only renewals timely filed before October 30, 2025, retain the up-to-540-day automatic extension under the prior rule. For renewals filed on or after October 30, 2025, no automatic extension of employment authorization applies (with limited exceptions for TPS-related EADs extended by Federal Register notice and certain categories extended by statute, such as STEM OPT extensions for F-1 students).

Advance Parole (I-131): Applications are subject to the processing hold. Importantly, although an approved advance parole document is not automatically revoked by the travel ban, it does not guarantee admission. Advance parole provides only the opportunity to present at a port of entry; CBP retains full discretion to deny admission. Nationals of travel ban countries face substantially elevated risk of denial at ports of entry. Advance parole is not a reliable travel document for Iranian nationals under current conditions.

Expedite requests: USCIS expedite criteria include emergencies or urgent humanitarian situations, which encompass "extreme living conditions, such as those caused by natural catastrophes or armed conflict." This criterion may apply to the Iran situation. However, PM-602-0194 provides that requests to lift the hold require approval from the USCIS Director or Deputy Director, while national interest exceptions require headquarters-level approval from the relevant adjudicative directorate. These additional approval layers make expedited processing unlikely in practice.

TPS and DED: Why Iran Has Not Been Designated

Temporary Protected Status (TPS) allows nationals of designated countries experiencing armed conflict, environmental disasters, or extraordinary conditions to remain in the U.S. with work authorization. The Secretary of DHS has sole discretion to designate countries for TPS. Despite the United States conducting sustained military strikes on Iranian territory that have displaced over 3 million people, the administration has not designated Iran for TPS or DED.

This stands in contrast to historical practice. Ukraine received TPS designation within days of Russia's February 24, 2022 invasion (DHS announced March 3, 2022; Federal Register effective date April 19, 2022). Syria received an initial TPS designation on March 29, 2012, and has been continuously redesignated since; its TPS remains in effect as of March 2026 only because a federal court issued a preliminary injunction in November 2025 blocking the administration's termination order (the Supreme Court agreed in March 2026 to hear the case). Afghanistan received TPS designation effective May 20, 2022, approximately nine months after the August 2021 Taliban takeover.

Why the absence of TPS matters for employers:

No automatic work authorization. TPS designation would grant EADs to all eligible Iranian nationals in the U.S., regardless of their current visa status. Without it, employees whose work authorization expires during the processing hold have no backup.
No protection from removal. TPS holders cannot be removed to the designated country during the designation period. Without TPS, Iranian nationals whose status lapses are theoretically subject to removal, though the logistical impossibility of removal flights to an active conflict zone provides practical (but not legal) protection.
No fee waivers or filing deadline extensions. TPS designations typically come with USCIS guidance on fee waivers and flexible filing windows. None of these accommodations exist for Iranian nationals.

The current administration has been actively terminating existing TPS designations for multiple countries, making a new designation for an adversary nation extremely unlikely under present political conditions.

What could change the TPS landscape:

Congressional action. Legislation could mandate TPS designation for Iran or create a separate protective status for nationals of countries where the U.S. is conducting military operations. Several bills have been introduced but none have advanced.
Federal court orders. Courts reviewing challenges to TPS terminations for other countries could issue rulings that constrain executive discretion, indirectly affecting the Iran situation.
A ceasefire or change in administration. Any shift in the U.S. posture toward Iran could open the door to humanitarian designations that are currently off the table.

Common Employer Responses to the Current Restrictions

The following is a general overview of the types of actions employers are commonly taking in response to the current restrictions. This information is not legal advice; employers with specific questions about their workforce should consult immigration counsel.

Immediate Actions Employers Are Taking

Workforce immigration audits. Many employers are identifying every employee born in Iran or holding Iranian citizenship, regardless of current citizenship, and mapping each person's current immigration status, document expiration dates, pending petitions, and upcoming filing deadlines to clarify exposure.
Travel risk communication. Employers are informing Iranian-born employees that departing the United States carries near-certain inability to return under the combined effect of the travel ban and consular shutdowns.
Early filing of extensions and renewals. Even though the processing hold means adjudication is frozen, filing creates a record, preserves status extension eligibility under the 240-day rule (for H-1B/L-1 with the same employer), and locks in priority dates for immigrant petitions.
Anti-harassment policy reinforcement. Employers are re-circulating anti-discrimination policies and training managers on the illegality of national-origin-based employment decisions.
Separating OFAC compliance from I-9 processes. Where SDN screening is conducted, employers are applying it to all employees uniformly and keeping it separate from the employment eligibility verification workflow.

Ongoing Monitoring

USCIS alerts provide updates to the processing hold, fee guidance, or filing instructions related to affected countries.
The monthly Visa Bulletin reflects changes to EB-2 priority dates that may affect future filing strategies.
Federal court decisions challenging the travel ban, processing hold, or TPS terminations could change the landscape quickly.
Detailed records showing that any employment interruptions resulted from government processing delays rather than employee fault or employer action are relevant to compliance documentation.
Contingency planning for critical roles filled by Iranian-born employees whose work authorization may lapse during the processing freeze is a common area of focus.
Transparent employee communication helps maintain trust and retention during extended periods of uncertainty.

Alma's platform provides real-time case tracking, deadline alerts, and direct attorney access for employers managing complex immigration situations. Schedule a consultation to discuss your workforce strategy.

Why Choose Alma for Conflict-Related Immigration Compliance?

Read how Alma's clients have handled complex immigration situations including geopolitical disruptions.

Periods of geopolitical disruption demand immigration counsel that combines deep legal expertise with operational speed. Traditional law firms often lack the technology infrastructure to track rapidly changing policy across dozens of affected employees simultaneously. Alma's attorney-led, tech-enabled platform is built for exactly this kind of environment.

Proactive case management: Alma's platform tracks every employee's status, expiration dates, and pending filings in a centralized dashboard. When policy changes occur, such as the January 2026 processing hold, Alma's team can immediately identify every affected case and adjust filing strategy within hours, not weeks.

Experienced legal team: Alma's attorneys have deep experience with Iranian national cases across all employment-based categories. Each client works with a dedicated attorney who knows their case history.

Transparent, flat-fee pricing: Alma's pricing is per-visa with no hidden costs. H-1B extensions are $3,000, new O-1 petitions are $8,000, EB-1A petitions are $10,000, and EB-2 NIW petitions are $10,000 (EB-1 and EB-2 NIW petitions are $7,000 with an approved O-1). RFE responses are included in the base fee. USCIS government filing fees are not included, as they vary by visa type; third-party costs such as education evaluations or translation services are billed separately. Payment plans are available.

Speed when it matters: Alma's technology platform enables 2-week petition preparation for EB-2 NIW cases. For employers needing to file quickly before policy windows close or deadlines approach, this speed is a meaningful advantage.

Get started with Alma to discuss your Iran conflict immigration compliance needs with an experienced attorney.

Frequently Asked Questions

Can employers still employ Iranian nationals under OFAC sanctions?

Yes. OFAC sanctions do not prohibit employing Iranian nationals who hold valid U.S. work authorization and reside in the United States. Under 31 CFR § 560.505, Iranian nationals with valid visas or immigration status are authorized to perform the activities their status permits. The sanctions prohibition under 31 CFR § 560.419 applies to hiring individuals ordinarily resident in Iran, not to Iranian nationals living in the U.S. All employees (not just Iranian nationals) are screened against the OFAC SDN list, and salary payments are not sent to Iranian banks. The baseline rule is that lawfully present Iranian employees can be hired, employed, and paid through normal U.S. payroll channels. When questions arise, sanctions counsel can provide case-specific guidance.

What happens if an employee's work authorization expires during the processing hold?

This depends on the visa category and whether a timely extension was filed. H-1B and L-1 employees who file timely extensions (Form I-129) with the same employer can continue working for up to 240 days beyond their status expiration while the extension is pending, per 8 CFR § 274a.12(b)(20). This authorization does not permit job changes. For EAD holders, the up-to-540-day automatic extension applies only to renewal applications that were timely filed before October 30, 2025, in an eligible category. For EAD renewal applications filed on or after October 30, 2025, DHS's Interim Final Rule (Federal Register 2025-19702) eliminates the automatic extension for most categories; limited exceptions remain for TPS-related EADs and certain categories extended by statute. The processing hold creates additional uncertainty because petitions are not receiving final adjudication on any predictable timeline.

Is international travel feasible for Iranian national employees?

Under the current travel ban, no U.S. consulate can issue a visa to an Iranian national. Consular services across the Middle East are closed or operating in emergency-only mode due to the conflict. Even employees holding valid H-1B approval notices (I-797) cannot re-enter without a valid visa stamp in their passport. Advance parole documents are not automatically revoked by the travel ban, but they do not guarantee admission; CBP retains full discretion to deny entry, and nationals of travel ban countries face substantially elevated risk of denial at ports of entry. Any departure from the United States is effectively permanent under current conditions.

Are expedite requests available for cases affected by the Iran conflict?

USCIS expedite criteria include emergencies or urgent humanitarian situations, which encompass "extreme living conditions caused by armed conflict." This criterion may apply to the Iran situation. However, PM-602-0194 provides that requests to lift the hold require approval from the USCIS Director or Deputy Director, and national interest exceptions require headquarters-level approval from the relevant adjudicative directorate. These additional approval layers make successful expedites unlikely in practice. Expedited processing is not a reliable planning assumption.

How does the EB-2 NIW pathway relate to Iranian employees during the conflict?

The EB-2 National Interest Waiver offers potential advantages even during the processing freeze. Filing an I-140 petition establishes a priority date that may matter when restrictions ease. Unlike employer-sponsored categories like EB-2 PERM or EB-3, the NIW is a self-petition that is not tied to a specific employer, giving employees flexibility to change jobs without restarting the green card process. Iranian nationals have historically benefited from more favorable EB-2 priority dates compared to high-demand countries, meaning that when the freeze lifts, NIW applicants with early priority dates may be among the first to move forward. Alma's platform can prepare a complete NIW petition in approximately 2 weeks, positioning employees for the earliest possible adjudication when restrictions change.