Supreme Court rules 8-1 in Dames & Moore v. Regan to uphold the IEEPA-based Iran asset freeze

The Supreme Court ruled 8-1 in Dames & Moore v. Regan on July 2, 1981, upholding the Carter administration's IEEPA-based asset freeze and suspension of American legal claims against Iran under the Algiers Accords. Justice Rehnquist's majority opinion endorsed "congressional acquiescence" as the standard for presidential emergency economic power but limited the ruling to actions Congress had implicitly approved. The decision became controlling precedent for all IEEPA challenges, including the 2025-2026 tariff litigation.