Archive · 26 Aug 2026
US Threatens Iran Trade Partners as India Trade Plunges
The United States wants to put more economic pressure on Iran.
It warned companies and countries that help Iran could lose access to the US dollar system.
President Donald Trump also asked other leaders to stop doing business with Iran.
China, Turkey, Iraq, the UAE, India and several others have trade ties with Iran.
China is Iran’s largest trading partner, according to the article.
China said it would protect its interests and criticized the US measures.
The UAE reportedly suspended trade with Iran after alleged missile launches, which Iran denied.
India still trades with Iran, but its trade has fallen sharply in recent years.
This means India could face pressure if Washington expands sanctions, although the article does not say that new sanctions against India have been imposed.
US Treasury Secretary Scott Bessent warned that entities facilitating money laundering for Iran could be removed from the US dollar system.
President Donald Trump urged world leaders to end trade and other interactions with Tehran, threatening further economic isolation.
China, Turkey, the UAE, Iraq, the European Union, India, Pakistan and Russia were identified as Iran’s important economic partners.
China-Iran trade was about $10 billion in 2025, while unreported Iranian crude exports to China were estimated at $31.2 billion.
India-Iran bilateral trade fell from $17 billion in 2018-19 to about $1.6 billion in 2025-26, according to Reuters.
- Who
- The United States, led by President Donald Trump and Treasury Secretary Scott Bessent, is pressuring Iran and its trade partners.
- What
- The US threatened sanctions and possible exclusion from the US dollar system for entities facilitating trade or alleged money laundering for Iran.
- When
- The warnings were issued on Monday and Tuesday; the article also cites trade figures from 2024, 2025 and 2025-26.
- Where
- The measures concern Iran and countries trading with it, including China, Turkey, the UAE, Iraq and India, with the Strait of Hormuz also central to the dispute.
- Why
- The US is seeking to increase economic pressure on Iran amid an unresolved Middle East war, tensions over the Strait of Hormuz and disagreement over Iran’s alleged nuclear ambitions.
US position
Iran’s partners’ objections
Economic pressure
US position
The United States says entities facilitating money laundering or continued interactions with Iran should face severe consequences, including removal from the US dollar system.
Iran’s partners’ objections
China criticized the threatened measures and said it would take all necessary steps to protect its rights and interests.
Legal justification
US position
Washington is using sanctions threats to isolate Iran and pressure countries to end economic interactions with Tehran.
Iran’s partners’ objections
China said the unilateral sanctions were not consistent with international law and lacked authorization from the United Nations Security Council.
Impact on trade partners
US position
The US is urging countries to choose cooperation with Washington rather than continued ties with what it called an isolating Iranian regime.
Iran’s partners’ objections
Countries with significant trade, energy or financial links to Iran—including China, Iraq, Turkey and India—could face pressure or disruption if the threats are implemented.
- US warning
- Entities facilitating money laundering for Iran could be removed from the US dollar system.
- Iran’s largest trading partner
- China, with reported bilateral trade of about $10 billion in 2025.
- Chinese crude purchases
- The article cites an estimate of $31.2 billion in unreported Iranian crude exports to China in 2025.
- UAE-Iran trade
- Bilateral trade was about $28 billion in 2024, with the UAE accounting for about 30% of Iran’s imports.
- Turkey-Iran trade
- Trade in goods was about $5.7 billion in 2024.
- Iraq-Iran trade
- Trade was about $10 billion in 2025; Iraq reportedly paid Iran $4 billion to $5 billion annually for natural gas.
- India-Iran trade
- Trade declined from $17 billion in 2018-19 to about $1.6 billion in 2025-26.