Trump's Threats Send Shockwaves Through Iran's Trading Partners
US President Donald Trump's threat to impose economic warfare on Iran has set off alarm bells among countries that trade with it. Pakistan, one of Iran's key partners, could face a severe setback if the US follows through on its promise.
The two nations have made significant progress in recent years, with informal trade between them totaling around $4 billion. This is despite past sanctions that had halted formal trade until recently.
Other countries are also at risk of facing economic consequences for their dealings with Iran. India's trade with Iran dropped sharply last year due to US sanctions, and the country now trades less than half of what it did in the previous year.
China is another major player that could be affected by Trump's threat. The country has been a significant buyer of Iranian oil, but has developed a ring-fenced system to process the oil without much US exposure. However, the US Treasury has already imposed sanctions on Chinese companies for buying Iranian oil and warned banks of secondary sanctions if they facilitate trade.