The United States has cautioned Pakistan against conducting business with Iran, warning of potential sanctions. This warning follows Iranian President Ebrahim Raisi’s visit to Pakistan, during which the two countries pledged to increase bilateral trade to $10bn annually and collaborate in the energy sector, including the Iran-Pakistan gas pipeline project. The US has imposed sanctions on Iran for decades to restrict its income from oil and petroleum products and has sanctioned entities and individuals accused of supporting its armed forces or militant groups. Pakistan is facing economic challenges and is seeking financial assistance from allies like Saudi Arabia, the United Arab Emirates, and the US, who are considered rivals of Iran. Experts believe Pakistan needs to balance its relationships with Iran and the US, prioritizing trade and energy cooperation with Iran while addressing the risk of sanctions.