US Threatens Iran's Trade Partners With Sanctions: Who Are Tehran's Biggest Economic Partners? Will It Affect India?

(MENAFN- Live Mint) The United States has come up with plans to strengthen their economic chokehold on Iran as a peace truce between the two countries seems unlikely.

US President Donald Trump has also warned other countries that if they continue their trade relations with Tehran, they too would have to suffer the economic wrath of Washington.

This announcements comes after six months of a war in the Middle East with no end in sight. The stalemate is mainly around the Strait of Hormuz and Iran's alleged development of nuclear power, with the US vowing that Tehran cannot be allowed to possess nuclear weapons, something the latter has denied as being part of its plans.

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On Monday, US Treasury Secretary Scott Bessent issued a warning that those entities facilitating 'money laundering' for Iran will be removed from the US dollar system altogether.

Bessent said, "Any entity that facilitates money laundering on behalf of Iran will be removed from the US Dollar system. The clock just started ticking."

"The President is making phone calls to world leaders with a specific request to cease their interactions with the regime; we are already seeing the results. Nations that facilitate any interactions with the regime should quickly heed our message. Those who stand with the United States will reap the rewards of our partnership; those who tether themselves to the Iranian regime should expect to share in the isolation of a withering regime," he added.

Who are Iran's biggest trading partners?

In this context, let us take a look at who the biggest trading partners of Iran are who might be affected if the US pulls the trigger on Tehran's trade partners.

The countries who are likely to be affected are China, Turkey, the UAE, Iraq, the European Union, India, Pakistan, as well as Russia.

China

Iran's largest trading partner, China has already slammed the US for threatening economic measures against nations doing business with Tehran.

A spokesperson from China's foreign ministry said on Tuesday that it would be taking "all necessary measures" in order to safeguard the rights and interests of Beijing.

China has also said that this unilateral sanction is neither in accordance with international laws nor does it have authorisation from the United Nations Security Council.

The total trade volume of China with Iran in 2025 was around $10 billion, as per China's General Administration of Customs (GACC).

CNBC quoted the US-China Economic and Security Review Commission to reveal that there has also been around $31.2 billion in unreported Iranian crude exports to China in 2025.

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Iran's neighbours across the Persian Gulf, the UAE, has been another important trading partner for the country.

As per data from the World Trade Organization, the bilateral trade between the two countries was around $28 billion in 2024, with the UAE contributing around 30% of Iran's total imports.

However, this trade relationship came to a screeching halt last week when the UAE suspended its trade relationship with Iran after two ballistic missiles were alleged fired by Iran towards the UAE's territory, a charge Tehran has denied.

Tehran is also dependent on the banking and financial system of the UAE to access economies across the world.

Turkey

Another major trading partner of Iran, Turkey has traded goods worth $5.7 billion in 2024, as per its Ministry of Foreign Affairs.

While Turkey exports machinery, chemical and agricultural products to Iran, the latter supplies Ankara with energy products.

Iraq

Iran's neighbour Iraq also has significant trade relationships with Tehran despite their troubled past.

As per a Reuters report, the Iraq-Iran trade was at around $10 billion in 2025.

Iraq's $4 billion to $5 billion payment per year to Iran for natural gas is a steady source of income for Tehran.

India

While India was one of the five biggest trading partners of Iran, trade volumes between the two countries has plunged in recent times. Bilateral trade has fallen from as high as $17 billion in 2018-19 to around $1.6 billion in 2025-26, as per Reuters.

This is expected to fall further after UAE halted its economic relations with Iran and the US announcing plans of new sanctions against the country.

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