Trump Iran trade threat puts pressure on China, UAE and regional partners

U.S. President Donald Trump’s threat to impose unprecedented economic warfare and isolation on Iran could expose countries trading with Tehran to additional economic consequences. China, Iran’s biggest oil buyer, received more than 80% of Iran’s shipped oil, with Kpler estimating average purchases of 1.38 million barrels per day in 2025. The United Arab Emirates, Turkey, Iraq, Oman, Pakistan, India, Armenia and Azerbaijan also maintain varying degrees of trade with Iran. The UAE suspended all financial and economic transactions with Iran until further notice, citing military escalation by Tehran and a missile threat. Other partners face potential pressure over energy payments, informal trade, re-exports and sanctions exposure. Secondary sanctions (penalties targeting third parties that trade with a sanctioned country) could particularly complicate transactions involving Chinese refiners, Iraqi energy payments and Pakistan’s plans to expand bilateral trade.

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