Iran Seeks Regional Security, Trade Shift Amid US Pressure

Iran is stepping up efforts to build closer security and economic ties with neighbouring countries as Washington prepares to expand its campaign of economic pressure against Tehran.

Iranian officials say the country is exploring a regional approach that would give Middle Eastern states a greater role in managing their own security while also expanding economic cooperation outside the US-led financial system.

The initiative comes at a critical moment. The United States has signalled that it is preparing a new and potentially far-reaching package of sanctions aimed at Iran and, potentially, countries and businesses that continue to provide economic support to Tehran. US Treasury Secretary Scott Bessent has described the planned measures as the toughest sanctions yet against Iran, increasing pressure on a country whose economy has already been weakened by years of restrictions and the recent conflict.

A push for a regional security framework

Iranian Parliament Speaker Mohammad Baqer Qalibaf said Tehran had received messages from neighbouring countries concerning possible new regional security arrangements and expanded economic cooperation.

Although Qalibaf did not identify the countries involved or provide details of a formal agreement, his comments suggest that Tehran is trying to promote the idea of a security structure less dependent on outside powers.

Iran argues that countries in the Middle East should take greater responsibility for regional stability and develop what Iranian officials describe as an independent or “homegrown” security order. However, no formal regional security bloc has yet been publicly announced, and the identities of potential participants remain unclear.

The proposal reflects a wider Iranian strategy: strengthening ties with neighbouring states at a time when Tehran faces military, diplomatic and economic pressure from the United States and its allies.

Trade without the dollar

Economic cooperation is another major part of Iran's strategy.

During discussions with Iraqi business representatives, Qalibaf called for Iran and Iraq to expand the use of their national currencies in bilateral trade. The proposal is aimed at reducing reliance on the US dollar and limiting the vulnerability of trade transactions to US sanctions and restrictions on the international financial system.

For Tehran, greater use of local currencies could help maintain commercial links with neighbouring countries even as Washington seeks to tighten restrictions on Iranian banks, oil exports and international transactions.

The strategy is not simply about replacing the dollar. It would require practical mechanisms for currency exchange, banking settlements, payment systems and agreements between governments and financial institutions. That means the success of such plans will depend heavily on whether Iran's regional partners are willing to take the financial and political risks associated with deeper economic engagement.

US pressure raises the stakes

The Iranian push is unfolding as Washington increases the pressure on Tehran.

US officials have indicated that the new sanctions campaign could extend beyond Iran itself and affect countries that continue to support the Iranian economy. China is particularly important because it has remained a major destination for Iranian oil, while neighbouring countries such as Iraq, Turkey and Oman also have significant economic connections with Tehran.

Iranian officials have strongly rejected the planned measures, arguing that secondary sanctions amount to an attempt by Washington to extend its authority beyond US borders. Tehran maintains that countries should be free to conduct trade and economic relations without being threatened by US penalties.

At the same time, Iran's leadership faces the difficult task of demonstrating that it can withstand additional economic pressure while protecting already strained trade and financial networks.

Regional diplomacy takes on greater importance

The growing focus on regional cooperation is also linked to wider diplomatic activity.

Pakistan's army chief, Asim Munir, is expected to visit Tehran for talks focused on regional peace and security, according to Iranian officials. The visit comes amid efforts to reduce tensions and follows months of conflict and failed attempts to establish a lasting diplomatic settlement between Iran and the United States.

The combination of security talks, economic diplomacy and local-currency trade proposals indicates that Tehran is attempting to create more options as pressure from Washington grows.

Iran's approach appears to rest on three main objectives: maintaining trade with regional partners, reducing exposure to the dollar-based financial system and encouraging neighbouring countries to support security arrangements that are less dependent on the United States.

An ambitious strategy with major obstacles

Turning those ideas into a functioning regional system, however, will not be easy.

Countries in the Middle East have different political interests, security partnerships and relationships with Washington. Some may support greater regional cooperation while remaining reluctant to join any arrangement that could expose them to US sanctions or place them directly inside the confrontation between Tehran and Washington.

There are also practical economic challenges. Trading in national currencies can reduce dependence on the dollar, but it does not automatically solve problems involving currency volatility, banking access, trade imbalances and international payment systems.

For now, Iran's proposed regional security and economic initiatives remain a political and diplomatic project rather than a completed alliance.

But the message from Tehran is increasingly clear: as the United States seeks to tighten Iran's economic isolation, Iran is looking to its neighbours for alternative security partnerships, new trade channels and financial arrangements that could reduce the impact of American pressure.

Whether those efforts develop into a lasting regional framework may depend on the willingness of neighbouring governments to move beyond diplomatic statements and accept the economic and political consequences of closer cooperation with Tehran.