The IAM policy includes two statements:

1️⃣ Allow ec2:TerminateInstances on all resources

2️⃣ Deny ec2:TerminateInstances if the request does NOT come from:

192.0.2.0/24

203.0.113.0/24

AWS IAM policy evaluation rules state:

Explicit Deny always overrides Allow.

A request must meet all applicable conditions in the policy to be granted.

aws:SourceIp condition applies when IAM actions are invoked via the public AWS APIs.

In this scenario, the administrator is not originating the request from one of the allowed CIDR blocks, so the Deny condition is triggered, overriding the Allow statement.

Therefore, the operation is blocked with:

403 AccessDenied: explicit deny

This matches the behavior described in the AWS IAM Policy Evaluation Logic used in the Security Pillar of the Well-Architected Framework:

Explicit Deny > Allow > Default Deny

IP-based Conditions restrict API calls originating outside approved network ranges

Options A/B/C do not accurately reflect this explicit Deny condition behavior.