The United States government announced on Aug. 24, 2026, new measures targeting Iran’s international trade, stating that entities conducting business with Tehran could be restricted from the U.S. dollar system. The stated purpose of the action is to further isolate Iran’s economy.
The policy outlines potential penalties against international companies, financial institutions, and other entities that engage in commercial activities with Iran. The announcement identifies several countries as Iran’s primary trading partners.
China
According to the U.S. government, China is the largest buyer of Iranian oil, accounting for approximately 90% of Iran’s oil exports. Data from the U.S.-China Economic and Security Review Commission shows that bilateral trade between China and Iran was valued at $9.96 billion in 2025. This figure does not include an estimated $31.2 billion in unreported Iranian crude oil exports to China during the same year.
The energy analytics firm Kpler reports that independent Chinese refiners are the primary recipients of this crude, which is often re-labeled as originating from other countries and settled through financial channels outside the U.S. dollar system. The U.S. Treasury has previously sanctioned several Chinese refineries for purchasing Iranian oil. The Chinese government has publicly stated its opposition to U.S. sanctions against Iran.
United Arab Emirates
The United Arab Emirates has historically been a significant trading partner for Iran. According to data from the World Trade Organization, bilateral trade between the two nations reached approximately $28 billion in 2024. During that year, the UAE was Iran’s largest source of imports, providing over 30% of its total, and its third-largest export market, receiving over $7 billion in goods, or 12% of Iran’s total exports.
Last week, the UAE government announced a suspension of all trade and financial transactions with Iran. The Washington Institute, a U.S.-based research organization, has published reports detailing financial and trade activities between the UAE and Iran.
Turkey
Turkey and Iran maintain commercial relations centered on energy and manufactured goods. According to the Turkish Ministry of Foreign Affairs, bilateral trade totaled $5.7 billion in 2024. Turkey exports machinery, chemical products, and agricultural goods to Iran, while primarily importing Iranian energy products.
A 25-year natural gas supply contract between the two countries expired at the end of July 2026. Turkish media reported that Iran’s share of Turkey’s total natural gas imports rose to 18.6% this year. The Turkish government has not announced any plans to halt energy imports from Iran.
Iraq
Iraq relies on Iran for electricity and natural gas. In March 2024, the two countries renewed a five-year contract for Iran to supply Iraq with up to 660 billion cubic feet of natural gas annually. The U.S. Energy Information Administration reported that in 2023, electricity from Iran accounted for more than 30% of Iraq’s power generation.
Reuters reported that Iraq-Iran trade exceeded $10 billion in 2025, with major Iranian exports including food and consumer goods. Reports indicate Iraq pays Iran between $4 billion and $5 billion annually for natural gas.
India
India is one of Iran’s top five trading partners. Data from India’s Department of Commerce shows that bilateral trade was approximately $1.6 billion for the fiscal year ending in March 2026. This is a decrease from $2.3 billion for the fiscal year ending in March 2023. India’s main exports to Iran include rice, tea, sugar, and pharmaceuticals, while it imports fruits from Iran.
In April, Indian refiners resumed crude oil imports from Iran after a seven-year pause, following a temporary waiver of U.S. sanctions on Iranian oil exports.
