The move comes after Iran tries to clamp down on internet freedom to stamp out widespread protests.
The US treasury said the move would help counter the Iranian government's attempt to "surveil and censor" its people.
Starlink provides internet services via a huge network of satellites and is aimed at people who live in remote areas who cannot get high-speed internet. Footage shared on social media on Friday showed large crowds of protesters gather in several Tehran neighbourhoods after dark, while other incidents occurred elsewhere the country. In the protests women have defiantly taken off their hijabs and burned them, or cut off their hair in front of cheering crowds.
On Friday, reports emerged from Oshnavieh, in Iran's West Azerbaijan Province, which borders Kurdistan, showing widespread protests, as well as suggestions demonstrators had taken control of large parts of the city. The BBC was unable to confirm this.