Trump's Sanctions Threat Rocks Global Trade Ties with Iran

US President Donald Trump's threat to impose economic sanctions and isolation on Iran has significant implications for countries that trade with it. According to a report, China is Iran's largest trading partner, accounting for over 80% of its shipped oil.

China has created a ring-fenced system to process Iranian oil, which is branded as Malaysian or Indonesian to avoid US exposure. However, the US Treasury has imposed sanctions on Chinese independent refineries that buy billions of dollars' worth of Iranian oil.

The UAE is another critical economic lifeline for Iran, providing 30% of its imports worth $21 billion in 2024. Turkey and Iraq also maintain significant trade ties with Iran, with bilateral trade standing at around $5-6 billion annually between Turkey and Iran.