This bill, titled the "Maximum Pressure Act," aims to significantly strengthen and expand United States sanctions against Iran, codifying a policy of maximum economic and diplomatic pressure. It explicitly attributes culpability to Iran for the October 7, 2023, Hamas attacks and mandates that any funds released to Iran be immediately frozen, advocating for stringent sanctions until Iran ceases its malign activities. The legislation codifies several existing Executive Orders, prohibits removing certain Iranian individuals or entities from the Specially Designated Nationals list, and mandates new sanctions on the Supreme Leader of Iran and associated officials, as well as on foreign persons involved in international arms sales to Iran, including property blocking and visa ineligibility.

A core provision eliminates the sunset clause for sanctions under the Iran Sanctions Act of 1996 and establishes 12 specific conditions for the termination of sanctions. These conditions, based on former Secretary of State Pompeo's demands, require Iran to fully account for its nuclear program, halt ballistic missile proliferation, release detained U.S. citizens, end support for terrorism, and cease destabilizing regional activities.

The bill expands sectoral sanctions under the Iran Freedom and Counter-Proliferation Act of 2012 to include key Iranian industries such as iron, steel, aluminum, copper, construction, manufacturing, mining, textile, petrochemical, automotive, and financial sectors. It also terminates existing waivers for nuclear activities and limits the President's authority to issue new waivers or licenses for Iran sanctions, with a general sunset on such authorities by February 1, 2028.

Further provisions target Iran's ballistic missile and drone programs, mandating sanctions on persons and economic sectors that support these activities. It also strengthens measures against financial institutions that engage in significant transactions with persons involved in human rights abuses or those supporting Iran's Revolutionary Guard Corps (IRGC) or other terrorist organizations.

Regarding the financing of terrorism, the bill prohibits International Monetary Fund allocations for Iran and requires a certification before Iran's designation as a primary money laundering concern can be removed. It also mandates special measures for domestic financial institutions dealing with foreign institutions that transact with Iran's Instrument in Support of Trade Exchanges (INSTEX).

The legislation explicitly prohibits future waivers or licenses connected to the IRGC's designation under Executive Order 13224 and as a Foreign Terrorist Organization, linking any potential relief to Iran meeting the 12 specified conditions. It also codifies Executive Order 14175, formally designating Ansar Allah (the Houthis) as a Foreign Terrorist Organization.

The bill requires numerous reports and determinations from various government agencies, including an annual report on Iran sanctions violations, a report on the estimated net worth of Supreme Leader Ali Khamenei, and an "IRGC Watch List" of entities with IRGC ownership or influence. Other mandated reports cover Iran's nuclear breakout timeline, disinformation campaigns, support for Hamas, counterintelligence threats, and the impact of sanctions relief on terrorism funding.

Finally, the bill increases rewards for information leading to the arrest or conviction of terrorists involved in the October 7, 2023, attacks against Israel. It also directs the repurposing of frozen Iranian funds, including those from South Korea, to the United States Victims of State Sponsored Terrorism Fund and establishes an "Iran Labor Strike and Civil Society Support Fund" and an "Iran Kleptocracy Initiative" to combat corruption and support civil society.