US Imposes New Sanctions on Iran Amid Ongoing Trade and Economic Resilience

The Trump administration recently announced a major economic "D-Day" against Iran, aiming to "collapse the regime," according to Treasury Secretary Steven Mnuchin. The new sanctions target nearly 60 entities, individuals, and vessels linked to Iran's nuclear, missile, cyber, and oil sectors, seeking to tighten the economic stranglehold on the Islamic Republic. The US warned that continuing economic ties with Iran would result in exclusion from the global financial system based on the US dollar.

Despite these sanctions, significant trade with Iran persists, especially with China. In 2025, China imported approximately 1.38 million barrels of Iranian oil daily, accounting for over 80% of Iran's oil exports. Although the ongoing conflict and the closure of the Strait of Hormuz have reduced this to about 0.53 million barrels daily in early 2026, non-oil trade between China and Iran reached around $10 billion last year. Iran also maintains substantial trade with neighboring countries such as Turkey, Iraq, Azerbaijan, Turkmenistan, Afghanistan, and Pakistan, as well as maritime trade with Russia via the Caspian Sea. This trade includes the International North-South Transport Corridor (INSTC), linking Russia and India through Iran.

To circumvent US dollar-based financial restrictions, Russia and China have developed alternative payment systems: Russia's SPFS and China's CIPS, enabling transactions in rubles and yuan respectively. Beyond China and Russia, other countries including India, Azerbaijan, the United Arab Emirates (UAE), and Turkey continue significant economic relations with Iran. Notably, an Indian state company acquired management rights to Iran's strategic Chabahar port in 2024, a critical asset outside the Strait of Hormuz. Trade between Iran and Azerbaijan grew by 4.5% in the first half of 2026, with 95% being Iranian exports. The UAE remains a major trade partner, supplying about 30% of Iran's imports in 2024 and handling 13% of its exports. Turkey's bilateral trade with Iran is valued at $5-6 billion annually, including 13% of Turkey's natural gas consumption.

Oil prices have shown limited reaction, with Brent crude rising only 0.4% to $92.5 per barrel recently, far below the $113 peak in May. Meanwhile, Iran faces internal energy challenges, including power outages due to aging infrastructure and fuel shortages. The Iranian parliament's energy committee convened urgently to address these issues.

The US is also offering $10 million for information on key Iranian Revolutionary Guard commanders, highlighting Washington's focus on Iran's security apparatus. Iranian Finance Minister Ali Madanizadeh responded by asserting that Iran had long prepared for such sanctions and developed a two-year plan to withstand them, declaring the end of the unipolar world order and expressing confidence in Iran's resilience.