Live Updates: Iran looks to boost regional trade ties as U.S. turns from bombs to economic warfare

Iran has finalized a preferential trade agreement with Oman, according to the Islamic Republic’s official Trade Promotion Organization. 

The agreement, which Oman has not yet confirmed, still requires approval by Iran’s parliament and other authorities. 

The announcement, relayed by Iranian state media, came two days after President Trump heralded a shift in U.S. tactics in the nearly six-month war to a “crushing economic operation,” and seemingly away from the heavy weapons used during the first phase of the conflict.

Vice President JD Vance said Thursday “the most effective tool that we have is the economic pressure that we can apply” on Iran, as Treasury Secretary Scott Bessent underlined in an interview with CNBC that Washington expects both allies and rivals to join the ramped-up campaign against Iran.

“This is going to be the greatest coordinated economic isolation in the history of the world,” he said, adding that the Trump administration was saying to all nations “you are either with us or against us.”

Oman has discussed taking future joint control of the Strait of Hormuz with Iran for weeks, and those talks — which have included the notion of fees being charged for commercial ships to use the maritime route — have drawn stern warnings from the White House about interfering in Mr. Trump’s push for a deal to end the war.

The Iranian trade office on Friday called the agreement with Oman part of Tehran’s broader push to strengthen economic ties with regional partners through trade diplomacy and improved logistics infrastructure.

In addition to the Oman agreement, Iran is pursuing renewed preferential trade talks with Turkey, reopening border markets with Iraq and Turkey, and expanding its network of commercial centers and trade advisers across the region as part of a wider strategy to boost non-oil exports and regional economic cooperation.