Iran scrambles to sustain trade as U.S. threatens to sanction countries that refuse to break ties

Iran is scrambling to sustain trade as the U.S. pushes a broader effort to sanction countries that keep financial ties with Tehran. After the UAE suspended trade relations with Iran last week, the Trump administration escalated its strategy to isolate Iran and pressure other governments to comply. The impact will likely hinge on China, which is the main buyer of Iranian oil and Iran’s largest trading partner. Russia is less able to provide support given its own military and economic crisis. Regional players such as Turkey, Pakistan, and Iraq are positioned to balance ties with both the U.S. and Iran while avoiding “secondary sanctions,” which Treasury Secretary Scott Bessent said would follow non-compliance. In 2024, Iran traded $125 billion in goods globally, despite Western sanctions, with the UAE, China, and Turkey supplying nearly three-quarters of imports.