The trade relationship between the EU and Iran has significantly deteriorated, hitting a two-decade low in 2025, as reported. This decline is largely attributed to the impact of sanctions imposed on Iran.
Despite the overall contraction, trade with Iran persists at a limited scale. Germany has emerged as the dominant player, accounting for the largest share of this reduced trade volume.
The implications of these trade dynamics are critical for understanding the operational landscape for businesses engaged in EU-Iran trade, particularly in terms of capacity and throughput.