US Senate passes Graham Act, intensifying sanctions on Russia and Iran

The U.S. Senate has passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, intensifying sanctions on both nations. The legislation aims to tighten financial and energy restrictions on Russia amid its ongoing conflict with Ukraine, while also extending existing sanctions on Iran. The bill targets Russia’s energy revenue and sanctions-evasion networks and authorizes tariffs on major buyers of Russian oil and gas. For Iran, the act aims to maintain pressure on its energy and weapons sectors by preventing a lapse in sanctions authority. This legislative move appears to indicate increased U.S. resolve in applying economic pressure on these nations. Key Takeaways Passage of the sanctions act suggests escalating U.S. efforts to exert economic pressure on Russia and Iran. Markets appear to interpret the sanctions as consistent with decreased likelihood of a US-Iran deal involving reconstruction funding. Observers suggest the act could complicate diplomatic efforts with Iran by reinforcing existing sanctions. What to Watch Key actors include U.S. President Donald Trump and Iranian Foreign Minister Javad Zarif, with potential mediating roles from Qatar and Pakistan. Any develo...