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Iran Shifts Trade to Land Routes Amid US Naval Blockade

Financial Times Markets •
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Iran has shifted from sea to overland trade routes to evade the US naval blockade in the Strait of Hormuz, with truck traffic surging at borders like Gürbulak with Turkey. Iranian truck driver Ashgar described waiting hours in a 7km queue to cross into Iran from Turkey, noting increased delays as maritime trade collapsed. Before the conflict, over 80% of Iran’s 180 million tonnes of annual two-way trade moved by sea; now, overland routes are critical for importing goods like bitumen and exporting aluminium and detergents.

Bilateral trade with Turkey rose 19% to $3.2bn in the first half of the year, and imports at Gürbulak jumped 250% in five months to August 12. However, poor infrastructure, lengthy customs checks, and bottlenecks raise costs amid 90% inflation. Experts say even doubled overland and Caspian Sea trade cannot replace lost maritime capacity.

Truckers face extreme delays—Yakup reported 24-day waits returning to Turkey, with no access to toilets. While Gürbulak-Bazargan is relatively upgraded, crossings with Pakistan, Afghanistan, and Iraq remain dire, with Iraq closing two borders after drone attacks on Saudi pipelines. Iran’s 13 rail border crossings and Caspian ports are handling more cargo, but land routes remain strained under pressure from US secondary sanctions threats.