Trump's Iran Threat Rocks Global Trade Ties

US President Donald Trump's threat to impose economic warfare and isolation on Iran could have far-reaching implications for countries that trade with it. According to a recent report, Iran has several key trading partners, including China, which is the largest buyer of Iranian oil. Over the past decade, China has created a system to process mainly Iranian oil without much US exposure.

China's refiners brand Iranian oil as Malaysian or Indonesian and trade in Chinese currency, using intermediaries that make it difficult to track. The US Treasury imposed sanctions on a Chinese independent refinery for buying billions of dollars' worth of Iranian oil and warned Chinese banks of secondary sanctions if they facilitated the trade.

In 2025, China bought an average of 1.38 million barrels per day of Iranian oil, accounting for over 80% of Iran's shipped oil. The UAE was another major trading partner, providing 30% of Iran's imports worth $21 billion in 2024, according to the World Trade Organization.

Turkey and Iraq also have significant economic ties with Iran, with Turkey importing Iranian natural gas and exporting manufactured goods to Iran. Pakistan has committed to expanding bilateral trade to $10 billion with Iran, while India's trade with Iran dropped sharply in 2020 after Washington imposed sanctions on Tehran.