What to Know About Iran’s Economic Ties With Gulf Countries

For years, the United Arab Emirates has been a lifeline for Iran’s sanctions-battered economy, despite political tensions between the two countries. But that relationship was imperiled on Tuesday, when the Emirates announced a total embargo on trade and transactions with the Islamic republic. If the threat holds, Iran would lose not just a major market for its goods but a portal to the world economy, analysts say. Afra Al Hameli, an Emirati Foreign Ministry spokeswoman, said the decision had been made “in light of regional escalations,” The embargo highlights both the depth of the economic relationships that Iran has cultivated across the Gulf region and the strain they are now under. The war that the United States and Israel began in late February and Iran’s ensuing blockade of the Strait of Hormuz have dampened growth across Gulf countries, throttling the energy exports those nations rely on. Here is what to know about Iran’s trade relationships in the Gulf. The economic “lung” of Iran Located just 50 miles across the Persian Gulf from Iran, the Emirates has traded with its neighbor for centuries. Today, it hosts hundreds of thousands of Iranians and is Tehran’s most important trading partner in the Gulf region, analysts said. In 2024, the Emirates supplied about a third of Tehran’s imports, according to World Trade Organization data, ferrying key electronics, precious metals and consumer goods to the Islamic republic. It is also one of Iran’s top export destinations, particularly for staple products like food and spices. We are having trouble retrieving the article content. Please enable JavaScript in your browser settings. Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times. Thank you for your patience while we verify access. Already a subscriber? Log in . Want all of The Times? Subscribe .