Iran shifts trade to the Caspian Sea due to blockade in the Strait of Hormuz
With southern ports closed due to a US naval blockade and ongoing conflicts, Iran is redirecting its trade routes to the Caspian Sea and land borders.
Iran is attempting to shift its trade routes to the northern Caspian Sea and land borders as southern ports remain under a US naval blockade and conflicts negatively impact the Strait of Hormuz; however, low water levels in the region and inadequate infrastructure create significant logistical challenges.
Congestion in the Strait of Hormuz and Southern Ports
Military operations and the naval blockade launched by the US and Israel have effectively closed Iran's traditional trade routes. In response to this situation, the Tehran administration has accelerated its search for alternatives regarding oil exports and basic food imports.
Water Levels in the Caspian Sea and Logistical Obstacles
Significant drops in water levels in recent years in the Caspian Sea, the world's largest enclosed body of water, are complicating maritime transport. Experts note that the transport capacity of ports has declined and ships are experiencing disruptions in voyages.
Congestion at Land Borders
Due to the contraction in maritime trade, long queues are forming at land border gates. Especially at the Norduz gate on the Armenian border and other terminals, waiting times can last for days due to inadequate infrastructure and increased traffic.
Increased Transportation Activities in Northern Ports
While the share of basic food imports has increased in Caspian ports such as Anzali, Amirabad, and Nowshahr, periodic increases in container arrivals have also been recorded. However, the capacity of northern ports falls far behind that of the south.
Growing Commercial and Military Relations with Russia
The trade shifting northward increases Iran's dependence on its partnership with Russia, while the fact that both countries are under sanctions and the effects of the war in Ukraine complicate the process.