US Economic Pressure on Iran: Trade Ties and Sanctions
The US has announced major financial sanctions against Iran, raising questions about revenue blocking and the stance of key trade partners like China, Turkey, and Pakistan.
Stock photo for illustration only, not from the actual event
- The US and Israel have launched a major financial offensive to increase pressure on Iran.
- China is Iran's top export buyer, accounting for 26.9% of its shipments in 2025.
- Turkey and Pakistan face complex diplomatic and economic dilemmas between the US and Iran.
- Global markets showed a muted response with oil prices dipping yet remaining above pre-war levels.
The United States has unveiled what it describes as the single greatest financial offensive ever to help it and Israel end their ongoing conflict with Iran. However, Iran is well-acquainted with such pressure tactics, having faced near-continuous US sanctions since the 1979 Islamic Revolution. Over the decades, Tehran has cultivated deep trade relationships with several nations that either disregard US economic pressure or simply cannot afford to sever commercial ties.
According to data from the International Trade Centre (ITC), a joint agency of the United Nations and the World Trade Organization, China remains the largest buyer of Iranian goods, accounting for 26.9% of Iran's exports in 2025. Several caveats surround the ITC data, which predates the onset of the US-Israel war with Iran. Economists suggest that even before the conflict, a significant volume of Iranian oil sales to China was underreported for political reasons. Furthermore, the ITC compiles Iran's export figures primarily from import statistics reported by its trading partners due to the scarcity of up-to-date official export data from Tehran, alongside incomplete import figures from nations like Iraq. Beijing has firmly stated its opposition to unilateral sanctions and its commitment to safeguarding its own interests.
Stock photo for illustration only, not from the actual event
Turkey stands as another major trade partner for Iran according to ITC figures, yet it maintains a much closer diplomatic relationship with the US than China does. This places Ankara in a difficult strategic position as Washington threatens penalties for entities continuing trade with Tehran. Economists note that Turkey cannot halt trade without severely damaging its own struggling economy, which currently battles an official inflation rate of 31.8%. As the sole Nato member sharing a land border with Iran, Turkey must delicately balance its military alliances with maintaining ties to its key economic neighbor.
Similarly, Pakistan shares a border with Iran and ranks among its largest export partners, yet its primary export destination is the United States, exposing Islamabad to higher risks of economic retaliation from Washington. Pakistan also acts as a crucial mediator in peace negotiations between the US and Iran, complicating any potential breakdown in diplomatic ties. Additionally, a significant portion of cross-border trade occurs outside government oversight. The BBC has documented evidence of widespread fuel smuggling across the 900km border using motorcycles, operated in some cases by individuals as young as 15. Despite pressure from American and Pakistani energy firms, the local government has struggled to police these remote border regions effectively.
"Anything that moves in Iran has already been sanctioned by multiple layers of sanctions, in fact. So the question now is one of enforcement. Does the United States have what it takes to impose fines and levies on countries that continue to trade with Iran?"
Ali Vaez, International Crisis Group
Armenia represents another notable trading partner for Iran within the ITC dataset, differing primarily through its heavy reliance on Russia, which accounted for 34.9% of all Armenian exports in 2025 despite sweeping Western sanctions against Moscow following the 2022 invasion of Ukraine. This reliance indicates Armenia's willingness to maintain commercial ties with Iran despite mounting pressure from Washington. US Treasury Secretary Scott Bessent asserted that the new sanctions would tighten financial nooses and block all revenue sources. Meanwhile, global financial markets registered a muted reaction, with crude oil prices retreating slightly from earlier spikes while remaining elevated compared to pre-war baselines.
This escalation of US economic pressure highlights the strategic reliance on financial levers to complement military campaigns. However, the ultimate efficacy of such measures depends less on policy announcements and more on enforcement capabilities, particularly against major economies and contiguous neighbors whose geographical proximity and economic necessities naturally foster informal trade channels and sanction evasion.
Source: BBC Business
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