India's Iran exports set to fall further due to Dubai halt, US sanctions

Business Recorder reported that Indian exporters expect planned US sanctions on Iran and the UAE's halt on Tehran trade to hit rice, tea and drug shipments, which have largely moved through Dubai's port. Bilateral trade has already fallen 90% from its 2018/19 peak of $17 billion, leaving mostly goods that qualify for humanitarian exemptions. Exporters fear a proposed US plan, described as an economic D-Day, could squeeze trade further.

The UAE last week halted all commercial activity, currency exchanges and financial dealings with Iran pending further notice. Indian exporters say payment channels that previously ran through the Emirates are now looking at other jurisdictions, with Turkey proposed as an alternative. Exporters warned that costs for freight, insurance and settlement could also rise.

India shipped $383.11 million of rice to Iran in the first half of 2026, and Garg said a lasting disruption would weigh more heavily on basmati millers and exporters in northern India. Tea exports to Iran reached $14.34 million over the same period, while Iranian crude oil made up the bulk of reverse flows, valued at about $707 million. Officials said those crude imports were largely enabled by a US exemption granted earlier this year and may be hard to sustain.