U.S. President Trump Moves to Isolate Iran: Overview of Iran’s Key Trading Partners

DUBAI, Aug 20 (Reuters) – President Donald Trump has signaled a shift toward unprecedented economic warfare against Iran, threatening to isolate the country from global markets. This stance could impact nations closely linked to Iran’s trade network.

Below are the principal partners that have historically supplied goods to Iran over recent years:

China

China remains Iran’s largest oil buyer, and U.S. pressure could extend to Beijing if the administration follows through on its threat. Over the past decade, China has developed a self-contained refining ecosystem that predominantly processes Iranian crude, limiting U.S. exposure. Iranian freight bound for China is frequently mislabeled as Malaysian or Indonesian, settled in Chinese currency, and routedահար through a web of opaque intermediaries, according to refinery insiders and traders.

In April, the U.S. Treasury sanctioned a Chinese refinery that had purchased billions of dollars’ worth of Iranian oil and warned Chinese banks of secondary sanctions if they facilitated the trade.

“Sanctions alone won’t resolve the issue. China urges all parties to seek a responsible, diplomatic solution,” stated Foreign Ministry spokesperson Lin Jian during a press briefing.

More than 80 % of Iran’s exported crude has gone to China, exploiting discounted oil that is otherwise U.S.-sanctioned. Kpler estimates that China bought an average of 1.38 million barrels per day of Iranian oil in 2025.

United Arab Emirates

The UAE has traditionally been one of Iran’s most vital economic lifelines, with Dubai banks holding large Iranian-linked deposits now frozen under U.S. sanctions. Prior to the 2020 war, the UAE supplied 30 % of Iran’s imports, worth $21 billion in 2024, and accounted for 13 % of Iran’s exports, according to World Trade Organization data. Non‑oil trade between the two countries totaled $6.6 billion in 2024, largely through re diren pestings.

Earlier this week, the UAE halted all financial and economic engagements with Iran, citing a missile threat from Tehran.

Turkey

Turkey and Iran maintain significant bilateral trade, with Turkey importing Iranian natural gas and exporting manufactured goods. Turkey has signaled no intention to curtail commerce, and trade totals around $5–6 billion annually, with $3 billion of Turkish exports heading to Iran. Turkey relies heavily on Iranian gas, which supplies 13 % of its consumption.

Iraq

Iraq’s trade with Iran surpassed $10 billion-part in 2025, driven largely by Iranian Arc food, consumer items, and other products. However, conflict in 2026 worsенное market conditions, causing trade to decline as border crossings became unreliable and transport costs rose. While this deteriorated the volume of cargo, the nations remain interdependent.

Energy remains central. Iraqi officials report annual payments of $4–5 billion for Iranian natural gas, used domestically for power generation. New U.S. sanctions on Iraq could jeopardise these energy payments, especially given existing restrictions that force the use of unofficial accounts.

Oman

Relations between Oman and Iran are historically amicable, and the former often mediates between Iran and the United States. Trade of goods grew to $1.5 billion in 2025 and $345 million in the first quarter of 2026 according to Omani statistical sources.

Pakistan

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For Pakistan, U.S. actions against countries trading with Iran could be a considerable downturn, analysts say, given Pakistan’s ambition to expand bilateral trade to $10 billion.

After sanctions previously devastated formal trade, informal exchanges have reached roughly $4 billion, with crucial commodity lines in oil, wheat, rice, livestock, and medicines. Recent formal agreements have accelerated the re‐establishment of trade channels.

India

India’s trade with Iran fell dramatically in 2020 amid intensified U.S. sanctions. Between 2019‑20 and 2020‑21, two‑way trade fell from $17 billion to $4.8 billion, and by fiscal year 2025‑26 it further contracted to $1.63 billion. Indian exports, amounting to $1.3 billion, largely comprise cereals, tea, coffee, and spices.

Delhi maintains that its exports continue for humanitarian reasons and should remain outside sanctions’ reach.

Armenia

In 2025, Iran represented $768 million (3.6 %) of Armenia’s overall trade turnover. In 2026, the trade volume with Iran rose to $371.4 million – an 8.4 % increase. Including imports of $336.9 million, Armenia’s trade with Iran grew 12 % in the first half of the year. Roughly 20 % of Armenia’s foreign trade flows through Iran, supported by a “gas for electricity” swap that powers both nations.

Azerbaijan

Between January and June 2026, the Azerbaijan‑Iran trade turnover climbed 4ელს5 % to $312.6 million, up from $299.1 million in the same period the previous year. Azerbaijan’s imports from Iran increased 1.5 % to $297 million, while exports to Iran surged 2.4 times to $15.6 million. Iran accounted for 3.56 % of standout Azerbaijan imports, rising from 2.54 % earlier that same period.

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