TEHRAN – Iran’s exports reached $16.55 billion in the first four months of the Iranian year (March 20–July 21), down 5.5 percent in value from a year earlier, even as trade with neighboring and Arab countries remained a major driver of non-oil commerce, officials said.

Mohsen Montazeri, director-general of planning and monitoring at the Trade Promotion Organization of Iran (TPO), said outbound shipments amounted to 48.81 million tons, representing a 1.5 percent rise in weight.

Non-oil trade, including both exports and imports, totaled 61.02 million tons worth $34.18 billion, marking a 0.5 percent increase in volume and a 10.2 percent fall in value year on year.

China remained Iran’s top export market with $4.56 billion, accounting for 27.6 percent of total shipments, followed by Iraq with $2.94 billion (17.8 percent), the United Arab Emirates with $2.12 billion (12.8 percent), Turkey with $1.67 billion (10.1 percent) and Afghanistan with $709 million (4.3 percent). Together, these five markets absorbed 72.5 percent of Iran’s exports.

Montazeri said the average export price stood at $339 per ton, down seven percent from last year. He added that petrochemicals and petroleum-based products made up 49 percent of exports, mining and minerals 25 percent, industrial goods 17 percent and agriculture nine percent.

On the import side, Iran purchased 12.21 million tons of goods worth $17.03 billion, a 14 percent drop in value. The UAE was the largest supplier with $5.41 billion (30.7 percent of total imports), followed by China at $4.59 billion (26 percent), Turkey at $2.59 billion (14.7 percent), India at $669 million (3.8 percent) and Germany at $628 million (3.6 percent). The five accounted for 79 percent of imports.

Imports were dominated by intermediate goods at 72 percent, with consumer and capital goods each holding a 14 percent share. Gold imports reached $1.07 billion in the period.

Montazeri said Iran posted a positive trade balance with 81 countries, totaling $5.8 billion, while recording a negative balance of $6.9 billion with 60 other states.

Trade with Arab nations and neighbors

Trade with Iran’s Arab neighbors has strengthened this year despite broader declines in overall export value. Iraq remained Iran’s second-largest export destination after China, with nearly $3.0 billion in purchases, dominated by foodstuffs, construction materials, and industrial goods. The UAE continued to serve as both a key market and a re-export hub, facilitating financial and logistical channels for Iranian trade despite sanctions.

Exports to Oman, Qatar and Kuwait also expanded, particularly in petrochemicals, cement, and agricultural products, according to data reported by the Tehran Times. Officials said Iran’s strategy of deepening regional supply chains and leveraging short-distance logistics has allowed Tehran to offset disruptions in long-haul trade.

Beyond Arab states, Turkey remained a vital market, while Afghanistan preserved its role as a steady buyer of fuel and basic goods despite political instability.

Mohammadali Dehqan Dehnavi, deputy minister of industry and head of the TPO, said non-oil exports reached a record $58 billion last year, boosted by preferential trade agreements. He cited the free trade deal with the Eurasian Economic Union, which took effect in May, as a key driver of recent growth.

He added that Tehran is working to finalize a free trade pact with Pakistan, a move expected to significantly raise the current $3 billion trade volume between the two neighbors.

Despite setbacks from port accidents, regional conflicts, and currency policy shifts, officials maintain that expanding ties with Arab states and regional neighbors will remain central to Iran’s trade strategy in 2025.

EF/