Nuclear Terrorism Act of 1986

Nuclear Terrorism Act of 1986 - Directs the President to: (1) seek universal adherence to the Convention on the Physical Protection of Nuclear Material (the Convention); (2) review whether the International Atomic Energy Agency's (IAEA) recommendations on physical protection of nuclear material are adequate to deter theft, sabotage, and the use of nuclear facilities and materials in terrorist acts and transmit the results of the review to the Director-General of the IAEA; (3) take, in concert with allies and other countries, such steps as are necessary to keep at a minimum the amount of weapons-grade nuclear material in international transit and ensure that the most effective security measures are taken when such material is transported internationally; and (4) seek an agreement in the United Nations Security Council to establish an effective regime of international sanctions against any nation or group which conducts or sponsors acts of international nuclear terrorism and measures for coordinating responses to all acts of international nuclear terrorism. Requires the President to report annually to the Congress on the progress made in achieving such objectives.

Amends the Atomic Energy Act of 1954 to authorize the President to suspend nuclear cooperation under such Act with any nation or group of nations which has not ratified the Convention.

Requires the Secretary of Defense to be consulted on the physical protection of special nuclear material during its export or transfer before the Nuclear Regulatory Commission (NRC) may issue a license under such Act for the export of such material and before the Secretary of Energy may grant approval under such Act for the transfer of such material. Defines special nuclear material as more than two kilograms of plutonium or more than 20 kilograms of enriched uranium.

Requires the Secretaries of Defense, State, and Energy, the Director of the Arms Control and Disarmament Agency, and the NRC to review the adequacy of the physical security standards currently applicable to the shipment and storage outside the United States of special nuclear material which is subject to U.S. prior consent rights, with special attention to protection against terrorist acts. Requires the Secretary of Defense to report to specified congressional committees on the results of such review.