Key facts
- President Donald Trump threatened "tremendous economic consequences" on countries aiding Iran.
- China is the largest buyer of Iranian oil, with over 80% of Iran's shipped oil destined for the country.
- The UAE suspended all financial and economic transactions with Iran until further notice.
- Turkey imports Iranian natural gas and exports manufactured goods to Iran.
- Iraq's trade with Iran exceeds $10 billion, with energy being a key component.
- Armenia's trade turnover with Iran increased in the first half of 2026, with 20% of its foreign trade passing through Iran.
U.S. President Donald Trump has threatened "tremendous economic consequences" for countries that trade with or support Iran, signaling a potential escalation of economic warfare and isolation. This move could have significant implications for Iran's key trading partners, including China, the United Arab Emirates, Turkey, Iraq, Oman, Pakistan, India, Armenia, and Azerbaijan.
China, the largest buyer of Iranian oil, could face additional pressure from the U.S. over its purchases. Over 80% of Iran's shipped oil has been destined for China, with purchases often disguised and settled in Chinese currency through intermediaries. The U.S. Treasury has previously sanctioned Chinese refineries and warned banks against facilitating Iranian oil trade.
The UAE has historically been a critical economic lifeline for Iran. Dubai's banks have held substantial Iranian-linked deposits, and the UAE was among Iran's largest trade partners before the war. This week, the UAE suspended all financial and economic transactions with Iran until further notice, citing military escalation.
Turkey maintains significant economic ties with Iran, importing natural gas and exporting manufactured goods. Turkey has not indicated any willingness to curtail commerce, with bilateral trade standing at around $5-6 billion annually. Iran is a notable source of natural gas for Turkey, providing 13% of its imports.
Iraq's trade with Iran reached over $10 billion in 2025, largely driven by Iranian exports of food and consumer goods. Energy is a key part of the relationship, with Iraq paying Iran billions annually for natural gas used to generate electricity. New U.S. sanctions could create challenges for Baghdad in maintaining these payments.
Oman has long maintained cordial ties with Iran and often acts as a mediator. Trade of goods between the two countries totalled $1.5 billion in 2025.
For Pakistan, U.S. actions against countries trading with Iran could be a serious setback, as both nations have commitments to expand bilateral trade to $10 billion. Informal trade between them is estimated at around $4 billion.
India's trade with Iran dropped sharply after past U.S. sanctions, falling from $17 billion to $1.63 billion in fiscal year 2025/26. Indian exports, primarily cereals, tea, coffee, and spices, are largely on humanitarian grounds.
Armenia's trade turnover with Iran increased in the first half of 2026, with 20% of its foreign trade passing through Iran. The countries have a "gas for electricity" swap agreement.
Trade turnover between Azerbaijan and Iran also rose in the first half of 2026, with Iran accounting for 3.56% of Azerbaijan's total imports.