{"id":267143,"date":"2026-08-27T16:39:16","date_gmt":"2026-08-27T16:39:16","guid":{"rendered":"https:\/\/www.europesays.com\/iran\/267143\/"},"modified":"2026-08-27T16:39:16","modified_gmt":"2026-08-27T16:39:16","slug":"new-sanctions-and-a-trade-embargo-leave-iran-with-few-places-to-turn","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/iran\/267143\/","title":{"rendered":"New sanctions and a trade embargo leave Iran with few places to turn"},"content":{"rendered":"

BEIRUT (AP) \u2014 Iran\u2019s economy, already strained by high inflation, years of Western sanctions and a war<\/a> that has sharply reduced oil revenue, is poised for more instability as the Trump administration tries to coerce other countries into ending all financial dealings with the Islamic Republic.<\/p>\n

A decision by the United Arab Emirates<\/a> to suspend trade relations with Iran last week kick-started the White House\u2019s latest attempt to isolate Tehran into submission. Iran entered the war with its foreign commerce concentrated among a relatively small group of countries, leaving it with fewer places to turn now. <\/p>\n

The success of the U.S. strategy will largely hinge on China<\/a>, the main buyer of Iranian oil and its top trading partner. Russia, a fellow target of sweeping U.S.-led sanctions, has a military conflict and economic crisis of its own and probably can\u2019t offer longtime ally<\/a> Iran much hard financial support.<\/p>\n

Regional partners like Turkey, Pakistan and Iraq maintain important relationships with both Iran and the U.S., giving them reason to avoid exposure to the secondary sanctions that Treasury Secretary Scott Bessent<\/a> said awaited nations that did not cut economic ties with Iran. <\/p>\n

\u201cThose who stand with the United States will reap the rewards of our partnership,\u201d Bessent said Monday while outlining the plan he called \u201cOperation Economic Outcast.\u201d \u201cThose who tether themselves to the Iranian regime should expect to share in the isolation.\u201d <\/p>\n

The Emirates will be hard for Iran to replace as a conduit for foreign goods and payments<\/p>\n

Despite Western sanctions, Iran in 2024 exchanged $125 billion worth of goods globally, according to Trade Data Monitor, a private firm. Iran is not a member of the World Trade Organization.<\/p>\n

The bulk of its declared international trade, though, was with a handful of partners. The UAE, China and Turkey supplied nearly three-quarters of Iran\u2019s merchandise imports. Four countries \u2014 China, Iraq, the UAE and Turkey \u2014 accounted for more than two-thirds of its non-oil exports.<\/p>\n

On the supply side, the UAE held outsized importance. It was Iran\u2019s biggest source of imported items and a gateway to financial channels that helped Iranian businesses make and receive international payments. Both roles kept Iran connected to the global economy. <\/p>\n

As a re-export hub, the UAE processed shipments from foreign suppliers reluctant to deal directly with Iranian customers. <\/p>\n

\u201cFrom Iran\u2019s perspective, the UAE can be replaced, but the Iranians are openly saying it\u2019s not going to happen overnight,\u201d said Alex Vatanka, a senior fellow at the Middle East Institute in Washington.<\/p>\n

China has deep economic ties to Iran but depends less on the relationship <\/p>\n

Beijing has economic interests in the Persian Gulf beyond Iran, and so far has avoided getting drawn into the conflict the U.S. and Israel initiated. China buys the overwhelming majority<\/a> of Iran\u2019s crude through opaque trading networks that bypass sanctions.<\/p>\n

Its manufacturing clout and stranglehold on critical mineral supplies nonetheless give Beijing more room than Iran\u2019s other partners to resist U.S. pressure, said David Lubin, a senior research fellow at Chatham House. Aggressive action against major Chinese banks and businesses could revive trade tensions as Chinese leader Xi Jinping<\/a> prepares to meet with President Donald Trump in Washington next month.<\/p>\n

\u201cI don\u2019t see China playing ball by any means,\u201d Lubin said. <\/p>\n

China is both Iran\u2019s largest reported export market and a supplier of essential parts and products, according to WTO and U.N. data. <\/p>\n

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During the Obama administration, Beijing did agree to reduce energy imports from Iran, said Atlantic Council fellow Daniel Fried, a former U.S. ambassador to Poland. <\/p>\n

\u201cWe will want the Chinese to go a lot farther than they have gone in the past,\u201d Fried said. \u201cBut it\u2019s a lot harder now.\u201d<\/p>\n

China has experience helping an ally survive sanctions: it has long been North Korea\u2019s economic lifeline<\/a> and main diplomatic backer. Experts say China has avoided fully enforcing U.N. sanctions on North Korea and sent clandestine aid to help its impoverished neighbor stay afloat.<\/p>\n

Expanding bilateral trade would create problems for Iran\u2019s neighbors<\/p>\n

Iranian Parliament Speaker Mohammad Bagher Qalibaf, who has been his country\u2019s lead negotiator over the past six months, was in Iraq the day of the UAE\u2019s trade suspension. A purpose of his visit, he said, was \u201cspeeding up efforts to expand joint cooperation among all countries in the region, without foreign interference.\u201d <\/p>\n

The U.S. dollar\u2019s preeminence in international trade and finance, however, means none of Iran\u2019s trading partners would antagonize Washington lightly, Vatanka said. \u201cWe\u2019re still at a point where if the U.S. wants to hurt you, it will matter,\u201d he said. <\/p>\n

Underscoring potential consequences, Turkey settled a yearslong U.S. dispute in July over the role of a state-owned bank in helping Iran evade sanctions through an oil-for-gold scheme<\/a>. Trump also moved to lift sanctions on its fellow NATO member<\/a> stemming from Turkey\u2019s purchase of a sophisticated Russian missile system.<\/p>\n

\u201cI really don\u2019t think Turkey would like to become the next country helping Iran to evade sanctions right now,\u201d said Riccardo Gasco, an analyst at the IstanPol think tank in Istanbul.<\/p>\n

Iran is a vital import source for Iraq and retains influence there through allied political factions and armed groups. Baghdad has sought closer economic and security ties with Washington. Since it invaded Iraq in 2003, the U.S. has significant control<\/a> over the nation\u2019s foreign currency reserves because they are housed in the Federal Reserve Bank in New York.<\/p>\n

Oman, a frequent intermediary between Washington and Tehran, has found its balancing act suddenly precarious. Trump threatened Oman last week over its ongoing negotiations<\/a> with Iran on the future management of the Strait of Hormuz<\/a>. <\/p>\n

One easy route for goods slipping past sanctions on Iran would be ports like Gwadar near the Persian Gulf in Pakistan, said Peter Harrell, a visiting scholar at Georgetown University.<\/p>\n

\u201cShip an intermodal container of drone parts to one of the ports in western Pakistan and unload it onto a truck and have it driven across the border into Iran,\u201d he said.<\/p>\n

While Pakistan, a key ally and economic partner of China<\/a> in the region, wants to increase trade with Iran, it faces competing pressures. It is serving as a key mediator<\/a> between Tehran and Washington and has deep security ties with Saudi Arabia, Iran\u2019s longtime regional rival. <\/p>\n

Caspian Sea trade route alternatives unlikely to grow quickly <\/p>\n

With the Strait of Hormuz mostly blocked and Russia\u2019s war with Ukraine endangering ships on the Black Sea, Iran has sought to develop a \u201croad of life\u201d on the Caspian Sea, said Nikita Smagin, an independent analyst and a former Russian state news agency correspondent in Tehran.<\/p>\n

Russia reportedly sent drones<\/a> to Iran this year, repaying Tehran\u2019s favor after Moscow\u2019s full-scale invasion of Ukraine. It also rerouted exports to Iran via Caspian Sea ports like Astrakhan. Agricultural products make up 80% of Russia and Iran\u2019s reported trade. <\/p>\n

\u201cBoth economies are exporting natural resources and have little to offer each other,\u201d Smagin said.<\/p>\n

The other countries that border the Caspian \u2014 Azerbaijan, Turkmenistan and Kazakhstan \u2014 probably won\u2019t rush to join in, said Umud Shokri, a fellow at George Mason University.<\/p>\n

Yet Russia and Iran are already in an \u201caxis of the sanctioned,\u201d said Mark Galeotti, executive director of the Mayak Intelligence firm. For decades the pair have collaborated to thwart trade restrictions, and increasing bilateral trade in both \u201cstrategic goods\u201d and contraband like military technology, microchips and Gucci handbags could be a next step.<\/p>\n

\u201cPomegranates and tomatoes only go so far,\u201d he said.<\/p>\n

___<\/p>\n

McNeil reported from Brussels. Associated Press writers Amir Vahdat in Tehran and Dasha Litvinova in Tallinn, Estonia, contributed to this report. <\/p>\n","protected":false},"excerpt":{"rendered":"BEIRUT (AP) \u2014 Iran\u2019s economy, already strained by high inflation, years of Western sanctions and a war that…\n","protected":false},"author":2,"featured_media":267144,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[3],"tags":[43516,2019,328,262,987,73218,73215,38,147,197,1304,34,61,196,73217,768,5637,73214,16811,81,73216,2445,2288,9114,7339,323,82,986],"class_list":["post-267143","post","type-post","status-publish","format-standard","has-post-thumbnail","category-iran","tag-alex-vatanka","tag-barack-obama","tag-business","tag-china","tag-china-government","tag-daniel-fried","tag-david-lubin","tag-donald-trump","tag-economy","tag-general-news","tag-international-trade","tag-iran","tag-iran-government","tag-iran-war","tag-mark-galeotti","tag-military-and-defense","tag-mohammad-bagher-qalibaf","tag-nikita-smagin","tag-pakistan-government","tag-politics","tag-riccardo-gasco","tag-sanctions-and-embargoes","tag-scott-bessent","tag-tariffs-and-global-trade","tag-turkey-government","tag-united-states-government","tag-world-news","tag-xi-jinping"],"share_on_mastodon":{"url":"","error":"Validation failed: Text character limit of 500 exceeded"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/posts\/267143","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/comments?post=267143"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/posts\/267143\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/media\/267144"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/media?parent=267143"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/categories?post=267143"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/tags?post=267143"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}