India's Iran exports face fresh hit from Dubai halt, US sanctions

India's exports of rice, tea, and pharmaceuticals to Iran face severe disruption due to new US sanctions and a UAE halt on trade with Tehran, according to Indian exporters. These goods have largely been routed through Dubai's port in recent years. Bilateral trade between India and Iran has fallen by over 90% from its 2018/19 peak of $17 billion, with exports now limited mostly to humanitarian goods. The UAE suspended all trade activities with Iran last week, and exporters are exploring alternative jurisdictions like Turkey, potentially facing higher freight and payment costs. In the first half of 2026, India exported $383.11 million of rice and $14.34 million of tea to Iran. Iran's exports to India were dominated by crude oil, valued at about $707 million, though officials said these imports may be difficult to sustain.