Market Analysis

The German-Iranian chamber of commerce has expressed opposition to proposed new sanctions against the Islamic Republic following its recent attack on Israel, as per a letter obtained by Reuters on Wednesday.

The letter, dated April 15, highlights concerns that the swift calls for sanctions merely mask Europe's diminishing influence, rather than contributing to a resolution. It points out that Germany has failed to maintain or foster the "special relationship" once shared with Iran, resulting in a loss of influence, with pivotal decision-makers shifting focus to Washington and increasingly Beijing.

European Union foreign policy chief Josep Borrell disclosed on Tuesday that certain member states have advocated for the expansion of sanctions against Iran. The proposal would broaden the existing sanctions regime, originally aimed at curtailing the supply of Iranian drones to Russia, to also encompass the provision of missiles. Additionally, it may extend to cover deliveries to Iranian proxies in the Middle East.

Bilateral trade between Germany and Iran witnessed a significant decline last year. German exports plummeted by over 24% to 1.2 billion euros, while imports from Iran decreased by 18% to 247 million euros.

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