Kathmandu— The United States is intensifying efforts to isolate Iran economically through a new wave of sanctions dubbed “Operation Economic Outcast,” targeting entities, individuals, and vessels involved in key sectors including shipping, gold, aviation, technology, and digital assets. US Treasury Secretary Scott Bessent stated the goal is to sever all economic ties sustaining the Iranian government, with President Donald Trump reportedly urging world leaders to halt dealings with Tehran. Analysis of official trade data reveals Iran’s reliance on a narrowing group of partners, particularly in Asia and the Middle East.

Shifting Export Markets

For two decades, Iran has operated under Western sanctions, leading its economy to increasingly rely on Asian and regional trading partners. In 2024, Iran exported approximately $56 billion worth of goods to 112 countries and territories. China stands as the largest recipient of Iranian exports, receiving $14.58 billion in goods—over 80 percent of Iran’s seaborne crude oil exports, often at discounted rates and transported via a ‘shadow fleet.’ Iraq is another key export destination with $11.7 billion in trade, largely fueled by Iranian gas supplies for electricity generation and other essential goods.

UAE as a Critical Trade Hub

The United Arab Emirates (UAE) has historically served as a vital financial and re-export hub for Iran, accounting for 13 percent of its exports at $7.16 billion in 2024. However, recent tensions have disrupted this relationship; Abu Dhabi imposed an indefinite trade embargo following accusations that Iran fired missiles at its territory—allegations Tehran denies. Turkiye also represents a significant export partner with $6.1 billion in trade, providing pipeline gas, petrochemicals, and construction materials. Afghanistan relies heavily on Iranian ports and overland routes for access to wider markets, receiving $2.3 billion worth of goods from Iran.

Import Reliance on China and the UAE

On the import side, Iran brought in approximately $68.5 billion worth of goods from 87 countries in 2024. The UAE is the primary source of imports at $21 billion, though much of this consists of re-exported goods that provide Iran with indirect access to Western machinery, electronics, and consumer products—a route now severed by Abu Dhabi’s embargo. China follows closely behind as a major supplier of machinery, electronics, vehicles, and industrial components, receiving $17.8 billion in Iranian import spending. Turkiye, benefiting from a shared land border and established commercial ties, provides $11.1 billion worth of goods including machinery, chemicals, and vehicles.

Diminished Trade with Europe and India

Trade with the European Union has significantly decreased since 2018, now totaling only $6.1 billion and concentrated on pharmaceuticals, medical equipment, and specialized machinery. Similarly, trade with India has fallen sharply to $1.6 billion in recent years, with New Delhi maintaining limited commercial links focused primarily on agricultural goods like rice, tea, and pharmaceuticals.

The implementation of these new sanctions and the responses from key trading partners will likely reshape Iran’s economic landscape in the coming months, potentially leading to further restrictions on its access to global trade.

(With inputs from Al Jazeera)

Originally published on abcnews.com.np.