With New US Sanctions, Iran Looks East

China poised to become Tehran's biggest trading partner
By Zach Samalin,  Newser Staff
Posted Oct 29, 2007 10:07 AM CDT
Iranians walk past anti-Israel and anti-U.S. slogans in Naghshe Jahan Square in Isfahan, Iran, Friday Oct. 26, 2007. Iran's top nuclear negotiator, Saeed Jalili, on Friday dismissed the U.S. announcement...   (Associated Press)
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(Newser) – As Iran is increasingly squeezed by new US sanctions and pressure from the UN, the country looks east for new economic alliances. China is about to overtake Germany as Iran's largest trading partner, and with oil prices skyrocketing, it looks as though Iran will be able to weather the storm of American sanctions, the Washington Post reports.

Iran has cut down on gasoline subsidies, reducing consumption and dependency on imports. Nevertheless, US pressure has buffeted the country as European nations slowly wean themselves off Iranian oil and foreign investments hit roadblocks related to US restrictions. But most analysts predict the sanctions will ultimately be unsuccessful, particularly given Mahmoud Ahmadinejad's determination to withstand American threats.