Iran vows devastating response as US warns Tehran's commercial allies: Who are its trading partners?
US-Iran war: President Donald Trump has also threatened economic consequences against any country providing “any type of lifeline” to Iran.
- Aug 22, 2026,
- Updated Aug 22, 2026 7:00 AM IST
US-Iran war: Iran has warned that any new US economic threats will trigger a “crushing, punishing and devastating” response, after Washington pledged what it described as the toughest financial penalties in history aimed at putting pressure on the Iranian leadership.
Iranian Armed Forces Chief of Staff Major General Ali Abdollahi said the country was prepared to respond across land, sea, air, air defence and cyberspace. Parliament speaker Mohammad Baqer Qalibaf, meanwhile, said Washington appeared to have concluded it could not prevail in direct military confrontation and accused the US and Israel of turning to economic and “cognitive” warfare.
The warnings followed US Treasury Secretary Scott Bessent’s pledge to announce details of new measures on Monday. President Donald Trump has also threatened economic consequences against any country providing “any type of lifeline” to Iran.
That could put pressure on several of Iran’s major trading partners, which are as follows:
China
China is Iran’s biggest oil buyer, with more than 80% of Iran’s shipped oil destined for the country. Chinese independent refiners have taken advantage of discounted Iranian crude, with Kpler estimating China bought an average 1.38 million barrels per day in 2025.
The US Treasury has already sanctioned a Chinese independent refinery over Iranian oil purchases and warned Chinese banks of secondary sanctions.
UAE
The UAE accounted for 30% of Iran’s imports, worth $21 billion, in 2024 and 13% of its exports. Non-oil trade totalled $6.6 billion that year. However, the UAE this week suspended financial and economic transactions with Iran until further notice.
Turkey
Turkey imports Iranian natural gas and exports manufactured goods to Iran. Bilateral trade is around $5-6 billion annually, with Turkey exporting about $3 billion to Iran. Iran supplies 13% of Turkey’s gas imports.
Iraq
Trade exceeded $10 billion in 2025, largely driven by Iranian food and consumer goods exports. Iraq also pays Iran around $4-5 billion annually for natural gas used to generate electricity. New US sanctions could complicate Baghdad’s payments for Iranian energy.
Oman
Trade between the two countries totalled $1.5 billion in 2025 and $345 million in the first four months of 2026. Oman has also traditionally acted as a mediator between Iran and other countries, including the US.
Pakistan
Formal trade has been expanding after years of sanctions-related disruption, while informal trade is estimated at around $4 billion. The two countries have commitments to expand bilateral trade to $10 billion.
India
India-Iran trade stood at $1.63 billion in FY2025/26, with Indian exports accounting for $1.3 billion, mainly cereals, tea, coffee and spices. New Delhi has previously maintained that these exports are humanitarian in nature.
Armenia and Azerbaijan
Iran accounted for 3.6% of Armenia’s trade turnover in 2025, while around 20% of Armenia’s foreign trade passes through Iran. Azerbaijan-Iran trade reached $312.6 million in January-June 2026.
US-Iran war: Iran has warned that any new US economic threats will trigger a “crushing, punishing and devastating” response, after Washington pledged what it described as the toughest financial penalties in history aimed at putting pressure on the Iranian leadership.
Iranian Armed Forces Chief of Staff Major General Ali Abdollahi said the country was prepared to respond across land, sea, air, air defence and cyberspace. Parliament speaker Mohammad Baqer Qalibaf, meanwhile, said Washington appeared to have concluded it could not prevail in direct military confrontation and accused the US and Israel of turning to economic and “cognitive” warfare.
The warnings followed US Treasury Secretary Scott Bessent’s pledge to announce details of new measures on Monday. President Donald Trump has also threatened economic consequences against any country providing “any type of lifeline” to Iran.
That could put pressure on several of Iran’s major trading partners, which are as follows:
China
China is Iran’s biggest oil buyer, with more than 80% of Iran’s shipped oil destined for the country. Chinese independent refiners have taken advantage of discounted Iranian crude, with Kpler estimating China bought an average 1.38 million barrels per day in 2025.
The US Treasury has already sanctioned a Chinese independent refinery over Iranian oil purchases and warned Chinese banks of secondary sanctions.
UAE
The UAE accounted for 30% of Iran’s imports, worth $21 billion, in 2024 and 13% of its exports. Non-oil trade totalled $6.6 billion that year. However, the UAE this week suspended financial and economic transactions with Iran until further notice.
Turkey
Turkey imports Iranian natural gas and exports manufactured goods to Iran. Bilateral trade is around $5-6 billion annually, with Turkey exporting about $3 billion to Iran. Iran supplies 13% of Turkey’s gas imports.
Iraq
Trade exceeded $10 billion in 2025, largely driven by Iranian food and consumer goods exports. Iraq also pays Iran around $4-5 billion annually for natural gas used to generate electricity. New US sanctions could complicate Baghdad’s payments for Iranian energy.
Oman
Trade between the two countries totalled $1.5 billion in 2025 and $345 million in the first four months of 2026. Oman has also traditionally acted as a mediator between Iran and other countries, including the US.
Pakistan
Formal trade has been expanding after years of sanctions-related disruption, while informal trade is estimated at around $4 billion. The two countries have commitments to expand bilateral trade to $10 billion.
India
India-Iran trade stood at $1.63 billion in FY2025/26, with Indian exports accounting for $1.3 billion, mainly cereals, tea, coffee and spices. New Delhi has previously maintained that these exports are humanitarian in nature.
Armenia and Azerbaijan
Iran accounted for 3.6% of Armenia’s trade turnover in 2025, while around 20% of Armenia’s foreign trade passes through Iran. Azerbaijan-Iran trade reached $312.6 million in January-June 2026.