What it is
The International Emergency Economic Powers Act (IEEPA) is a U.S. federal law allowing the President to declare a national emergency in response to an unusual and extraordinary threat to national security, foreign policy, or the economy. Once declared, IEEPA grants the President broad powers to regulate international transactions, seize foreign assets, and impose sanctions. This authority is typically delegated to the Treasury Department's Office of Foreign Assets Control (OFAC) to implement specific measures.
IEEPA is frequently cited when the U.S. government imposes economic sanctions on foreign countries, entities, or individuals, impacting global trade and financial markets. For example, sanctions targeting specific industries or companies can disrupt supply chains, alter commodity prices, and affect the valuations of multinational corporations. Investors follow IEEPA-related news to understand potential risks to their portfolios stemming from geopolitical events and government policy actions that restrict economic activity.
Why it matters
IEEPA-driven sanctions can create market volatility, disrupt global trade, and impact asset values. Understanding its use helps anticipate geopolitical risks to investments.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice