Iran-UK trade reached $120 million in 2024, according to a report by the International Affairs Department of Iran Chamber of Commerce, reflecting a modest increase of 7% compared to $112 million in 2023, despite continued sanctions and diplomatic strains.
The report noted that bilateral trade between the two countries, which peaked at $6.5 billion in the 1970s, has declined significantly in recent decades. However, recent data show a slight upward trend.
In 2024, UK exports to Iran rose by 6% year-on-year to $83 million, while Iranian exports to the UK climbed 9% to $37 million.
UK shipments to Iran primarily consisted of medical equipment, plastic products, and machinery. In return, Iran exported pistachios, carpets, and petrochemical products to Britain.
The report suggests that if sanctions were lifted, trade between the two countries could grow significantly, potentially reaching $5 billion annually. Sectors such as oil and gas, high-tech industries, and financial services are identified as having strong potential for expansion.
Nevertheless, ongoing political tensions – such as the unresolved $1.5 billion debt dispute involving Shell, as well as broader diplomatic challenges – continue to threaten this outlook. While European Union mediation or resolution of financial disagreements could help improve relations, the report concludes that such progress is unlikely in the short term.