"The United States took action this week to impose maximum pressure on the Iranian regime by restricting their UNGA delegation’s movement and access to wholesale club stores and luxury goods," the state department said in a statement.
"We will not allow the Iranian regime to allow its clerical elites to have a shopping spree in New York while the Iranian people endure poverty, crumbling infrastructure, and dire shortages of water and electricity."
Iran’s President Masoud Pezeshkian and Foreign Minister Abbas Araghchi are set to attend high-level meetings at the UN starting September 22 in New York.
The 80th session of the UN General Assembly opened on September 9, with world leaders due to arrive in New York this week.
"Secretary Rubio is also restricting the Iranian delegation to the areas strictly necessary to transit to and from the UN headquarters district to conduct their official UN business," the state department added. "The security of Americans is always our priority," it said, vowing to bar Iran the ability "to promote its terrorist agenda".
The 1947 UN Headquarters Agreement requires the United States to grant visas to UN representatives, including world leaders, for UN-related activities in New York, with exceptions only for proven security threats.
Washington earlier this month revoked or denied visas for most Palestinian officials to attend the UNGA, in a move seen as a protest about Western allies' looming move to recognize a Palestinian state.
The state department said its move was made in solidarity with the Iranian people.
"When the United States says it stands with the people of Iran, we mean it. Today’s actions affirm the United States’ unwavering commitment to supporting the Iranian people in their pursuit of accountability for the regime and for a better life."