American companies that produce sophisticated military weaponry are prohibited from exporting that equipment to unfriendly governments, such as Iran. This complete ban on exporting sensitive technology to specific countries is an example of a (n) :

embargo

Explanation:

Embargo -

It refers to the situation when the government disagrees to trade with some specific area of the country, is referred to as embargo.

The reason for this situation can be due to some political issue between the countries.

Embargo has the capability to reduce or completely stop the import or export process.

Hence, from the given scenario of the question,

The correct answer is embargo.