Iran finalizes trade deal with Oman as US ramps up sanctions pressure

Iran has finalized a preferential trade agreement with Oman and submitted it to parliament for approval, a senior trade official announced Friday, as Tehran seeks to deepen regional economic ties days after President Donald Trump declared an "economic D-Day" against the Islamic Republic.

The Deal

Abdolamir Rabihavi, head of the West Asia department at Iran's Trade Promotion Organization, told state news agency IRNA that the agreement had completed all administrative procedures and is expected to reach parliament's agenda next month. Rabihavi said the organization had made progress in trade diplomacy and the development of border and port infrastructure with neighboring countries over the past two years.iranintl+1

Beyond the Oman deal, Iran is pursuing the revival of a preferential trade agreement with Turkey, with preliminary negotiations completed, Rabihavi said. Tehran has also reopened inactive border markets with Iraq, expanded its network of commercial offices, and reviewed the capacity of southern ports, including Jask, to facilitate regional trade.nournews+1

US Pressure Mounts

The trade push comes against the backdrop of escalating American economic pressure. Trump announced what he called an "economic D-Day" against Iran on Wednesday, promising "economic warfare and isolation on an unprecedented scale" in a social media post. Treasury Secretary Scott Bessent said Washington would impose the "toughest sanctions in history" on Tehran. Trump warned that any country trading with Iran would face "tremendous" economic consequences.kcra+2

Iran's Foreign Minister Abbas Araghchi dismissed the threat on Thursday, calling it "a diversion from America's own crisis: unprecedented debt and surging interest costs."kcra

Broader Iran-Oman Ties

The trade agreement builds on deepening bilateral relations. Iran and Oman signed 18 memoranda of understanding during President Masoud Pezeshkian's visit to Muscat in May 2025, covering sectors from energy and defense to technology and education. The two countries have also been negotiating arrangements for shipping through the Strait of Hormuz, with an agreement on route coordinates reached in early August.tehrantimes+2

Oman's Sultan Haitham bin Tariq has voiced support for closer economic relations, saying during Pezeshkian's visit that "the relations between Iranian and Omani ports must be developed."tehrantimes