TEHRAN – After completing a state visit to China that was hailed as having created great “economic opportunities” for Iran, the Pezeshkian administration is now eying more projects with neighboring countries, particularly the members of the Economic Cooperation Organization (ECO).

The second edition of the Iran-ECO Conference was held in Tehran on Tuesday. Iran’s Foreign Minister, Abbas Araghchi, attended the event alongside several other Iranian diplomats and officials who joined Pakistani, Turkish, Afghan, Azeri, as well as Tajik, Kazakh and Kyrgyz dignitaries at the Tehran venue. 

At the opening ceremony, Araghchi urged member countries to prioritize the scope and execution of their cooperation agreements.

“The current level of cooperation does not match the enormous capacities of the ECO region whatsoever,” the top Iranian diplomat said. “The ECO can become a successful model of multilateral economic collaboration among neighboring countries.”

“Iran believes ECO can and should play a leading and effective role in shaping the new economic architecture of the region,” he added.

Araghchi also highlighted the strategic importance of cooperation with Central, South, and West Asian states, emphasizing that such partnerships would bring undeniable added value to all ECO member countries.

Iranians have endured economic hardships due to Western sanctions for years. Since 2022, the country has increasingly lost confidence in the possibility of mending ties with the West and having the embargoes lifted. The final blow came in June of this year, when American and Israeli forces attacked Iranian nuclear, civilian, and military infrastructure amid a diplomatic process aimed at limiting the country’s nuclear program in exchange for the removal of sanctions.

The push for closer and more comprehensive economic ties with China, Russia, neighboring countries, as well as some nations in Asia, Africa, and South America, began during the administration of the late President Ebrahim Raisi, who tragically died in a helicopter crash last summer. His successor, Masoud Pezeshkian, shares a similar outlook on international relations but initially appeared more willing to give engagement with the Western states another chance, after they unexpectedly withdrew from negotiations in 2022. Since the June war, however, he seems to have accelerated efforts to pivot further toward the East and the Global South. At the same time, he has stated that he remains open to diplomacy with Western countries—provided they are genuinely willing to engage at the negotiating table.

When the Tehran Times interviewed ECO Secretary-General Asad Majid Khan last year, he stated that the bloc possesses vast untapped potential, despite its 40-year history. But he also said that member countries now have a greater incentive to utilize ECO's capabilities. This incentive has grown significantly in recent months, particularly during the Trump administration, according to Economic expert Majid Shakeri.

“The United States used to be what we call the ‘demander of last resort’, but in international trade,” the expert said. The demander of last resort is an economic actor that steps in to sustain demand when the private sector is unable or unwilling to do so, helping to stabilize the economy during downturns. The U.S. played this role for other countries, meaning they could always rely on Washington as a dependable trade and economic partner.

“The economic order established after WWII, and particularly after the fall of the Soviet Union, was largely centered on the United States. However, this order has gradually eroded over the years. Today, the U.S. not only shows little interest in purchasing foreign products, but it also punishes those who don't import American goods with aggressive tariff policies,” Shakeri explained.

This evolving situation has compelled countries worldwide to seek alternatives. Iran can be one of these alternatives for each member of the ECO. "Even if our ties with the West were frictionless, Iran would still need to diversify its economic partners, just like all other countries in the world today."