Iran and Venezuela will finalise their long-awaited free trade agreement, with the text and annexes set for ministerial signing by June 12, the head of Iran's Trade Promotion Organisation said, IRNA reported on June 10.

The deal revives a dormant 2004 trade pact between the sanctions-hit allies that has languished for almost two decades, potentially unlocking new commercial opportunities as both countries seek to bypass Western economic restrictions and diversify their trading partnerships. During that era, Iranian President Mahmoud Ahmadinejad and his Venezuelan counterpart, Hugo Chávez, attempted to use both countries' oil resources to fend off US imperialism during the Bush administration. Both leaders made frequent reciprocal visits, publicly expressing solidarity and mutual support, with Chávez pledging that Venezuela would “stay by Iran at any time and under any condition”

Mohammad Ali Dehghan Dehnavi announced the breakthrough during talks with Venezuela's Deputy Commerce Minister Johann Alvarez in Tehran, describing the "finalisation" as a crucial step towards boosting bilateral trade.

The agreement covers rules of origin, sanitary and phytosanitary requirements, and product lists spanning agriculture, fisheries and industrial goods.

"The outlook in this agreement is equal and friendly, and we are keen for Venezuela's exports to Iran to increase because it appears Iran and Venezuela can become each other's trade hub in the Americas and Asia," Dehghan Dehnavi added.

The deputy industry minister characterised Iran-Venezuela relations as "historical and friendly" whilst stressing the need to capitalise on ties to drive up trade volumes.

He drew parallels with Iran's existing free trade arrangement with the Eurasian Economic Union, which has lifted bilateral trade to $4bn and targets $10bn in the near term.

Venezuela's Alvarez acknowledged current trade volumes fail to reflect the countries' relationship potential, calling the commercial agreement a "first step" towards bringing Iranian and Venezuelan merchants closer together.

The deal comes as increasing numbers of Iranians have made their way to Caracas in recent months, according to a report by bnl IntelliNews’ regional bureau.

Earlier in January, Iran's Foreign Ministry Spokesman, Esmail Baghaei, publicly endorsed Maduro's presidency, pledging enhanced bilateral cooperation and expressing solidarity against what he termed "evil interventions and unilateral and illegal US sanctions."

In November 2024, Iran and Venezuela launched their 10th Joint Economic Cooperation Commission in the South American capital.

The meetings highlighted growing economic cooperation between the two countries, both under US sanctions.  The gathering brought together key Venezuelan officials, including Foreign Minister Yvan Gil, Transport Minister Ramon Velasquez, Vice President and Communications Minister Freddy Nuñez Nazaret, and Industry Minister Alex Saab, alongside Iran's Ambassador to Caracas, Hojjatollah Soltani.

Venezuela and Iran have established 289 bilateral agreements spanning multiple sectors, El Universal reported. The deals cover areas including science, technology, industry, agriculture, education and culture, reflecting deepening ties between the two nations since Chávez’s presidency.

Earlier in April, the Venezuelan Navy augmented its military capabilities with the addition of new CM-90 anti-ship missiles (ASM) manufactured in Iran, according to the country's Ministry of Defence. 

This was confirmed during a visit to the Agustin Armario naval base in Puerto Cabello by Defence Minister Padrino Lopez, the ministry's site said on April 16 in a direct message to the US and Western countries the day after Iran attacked Israel with 350 rockets.

Iran exported $40mn worth of goods to Venezuela in the nine months of the last Persian calendar year to December 20, 2024, with no registered imports flowing the other way, according to official customs data.