TEHRAN- Disruptions in the Strait of Hormuz shifted Iran's trade route toward neglected land and rail corridors, a path now activated from Pakistan and Iraq to China and Central Asia.

According to Mehr News Agency, the disruptions in commercial traffic through the Strait of Hormuz have not only affected Iran's maritime trade but have also redirected a portion of regional trade flows toward alternative land and rail routes , an event that once again highlights Iran's geopolitical importance in the region's transit equations.

Over recent decades, maritime trade has become one of the main pillars of the global economy. According to international estimates, more than 80% of global goods trade is conducted via sea. Low transportation costs, the ability to move large volumes of goods, and direct access to international waterways have kept sea routes as the main artery of world trade.

In this context, Iran, due to its geopolitical position, has always been considered a key transit player in the region. Its location at the junction of the Persian Gulf and the Sea of Oman in the south, combined with simultaneous access to the Caspian Sea in the north, has created a rare capacity to transform Iran into a transit hub between Asia, Europe, the Caucasus, India, and the CIS countries.

* Washington's failure to enforce a naval blockade of Iran

However, the escalation of tensions in the Strait of Hormuz following the disruptions that began on April 13, 2026, after the failure of Iran-US peace talks in Islamabad, caused a portion of trade between Iran and the region to shift from maritime routes to land and rail corridors, a change that has revealed, more than ever, the necessity of diversifying the country's trade routes.

The Strait of Hormuz, as one of the world's most sensitive energy and trade chokepoints, is now at the center of geopolitical tensions. This has led Iran and its trade partners to pay greater attention to activating neglected transit capacities in land, rail, and even alternative maritime routes.

At the same time, many regional and international analysts believe that a scenario of a naval blockade of Iran is not fully feasible. Iran's geographical vastness, diversity of land and sea borders, simultaneous access to eastern, western, and northern corridors, and connection to regional transit networks are among the factors that make any complete closure of Iran's trade highly challenging.

Nonetheless, recent conditions have shown that relying solely on traditional routes of the Persian Gulf and southern ports cannot meet the long-term needs of the country's foreign trade. Developing land corridors, strengthening the rail network, and activating transit capacities in the north, east, and west of the country have now become a strategic necessity.

* China, Iraq, and Turkey: Iran's main trade partners 

Iran currently conducts trade with more than 100 countries, but China remains Iran's largest export partner. According to data from Trade Data Monitor, in the year ending October 2025, China imported more than $14 billion worth of goods from Iran, indicating continued economic interdependence between the two countries.

After China, Iraq ranks second with approximately $10.5 billion in imports from Iran. The United Arab Emirates and Turkey are also among Iran's most important export destinations. Meanwhile, trade between Tehran and Ankara has been on an upward trend over the past year, with Iran's exports to Turkey rising from $4.7 billion in 2024 to $7.3 billion.

* Activation of alternative routes following Strait of Hormuz disruption 

In response to the restrictions imposed in the Persian Gulf, Pakistan announced the reopening of six key land routes for transferring goods to Iran — a move that alleviated a significant portion of the pressure on regional trade. According to reports, approximately three thousand containers that had been stranded due to maritime disruptions and the halt of operations at Karachi Port were brought into Iran via land routes.

This development showed that Iran's trade can continue through alternative routes even under maritime pressure. Meanwhile, Bloomberg reported a threefold increase in rail trade between Iran and China and announced that Pakistan has activated a new transit route for third-country goods destined for Iran.

* Alternative rail-maritime routes for Iran-China trade

China, as Iran's largest trade partner, now plays a key role in redesigning regional transport routes. Experts believe that several combined routes are available for sustaining trade between Tehran and Beijing, independent of the Strait of Hormuz.

One of the most important of these is the combined rail-maritime corridor that starts from Yiwu in China, passes through Kazakhstan and the port of Aktau, and then enters Iran via the Caspian Sea. Another route is the all-rail Central Asian corridor, which connects goods from China, Kazakhstan, Turkmenistan, and Uzbekistan to the Sarakhs border crossing and then to Iran's rail network.

Alongside these two routes, the Pakistan maritime-land corridor has also gained special importance — a route that transports goods from China to Karachi Port and then brings them into Iran by road and rail. Additionally, some of China's trade could enter Iran overland via Turkey and the port of Mersin.

Transport experts believe that increasing the share of land and rail trade has revealed, more than ever, the need to modernize the country's transit infrastructure. Although parts of Iran's rail network have double tracks and adequate transit capacity, some key routes remain single-track or outdated and cannot handle a surge in transit cargo.

* New corridor connecting China to Europe via Iran

Concurrently with Emomali Rahmon's visit to China, the first container train on the China-Kyrgyzstan-Uzbekistan-Tajikistan route was launched — a project implemented with the participation of Chinese and Uzbek joint ventures and considered part of the strategy to develop new transit corridors in Central Asia.

Following this, Tajikistan and Uzbekistan also activated an experimental multimodal corridor: China-Tajikistan-Uzbekistan-Turkmenistan-Iran-Turkey-Europe. This route is designed to develop transport infrastructure, digitize transit, and increase border crossing capacity, and it could strengthen Iran's position in connecting East Asia to Europe.

* Full reopening of Iraqi customs for trade with Iran

In another development, the Prime Minister of Iraq announced the activation of all Iraqi customs offices for trade with Iran, a decision that could strengthen Iraq's role as a complementary land trade route for Iran under maritime restrictions.

Accordingly, the customs authorities of northern, central, western, and southern Iraq, as well as the air cargo customs and Baghdad International Airport, have been tasked with facilitating transit transport and reloading of goods related to Iran — a move that, if sustained, could reduce some of the pressure on traditional maritime trade routes.

Meanwhile, the completion of the Shalamcheh-Basra and Kermanshah-Khosravi rail lines — as key arteries for developing trade and transit between Iran and Iraq — has received increased attention.

Mohammad Javad Shahjouei, a rail industry expert, told Mehr News Agency that the Shalamcheh-Basra railway is one of the strategic and key projects in the region's transport sector. He stated that the project has been on the agenda for nearly two decades, but for various reasons, including obstruction by the Iraqi side and a lack of coordination among domestic institutions, it has not seen significant progress.

He added that fortunately the project is now on the right track, and the Islamic Republic of Iran Railways Company is seriously determined to accelerate its completion. Given the geographical location and advantages of this route, connecting Iran to Iraq by rail via Shalamcheh is considered a key priority in international transport.

Shahjouei noted that the Shalamcheh-Basra route is currently the only viable option for connecting the two countries by rail. He also mentioned the Kermanshah-Khosravi railway project, which is intended to connect to Khanaqin in Iraq and then to Baghdad. Although the second route is highly important technically and in terms of freight and passenger capacity, due to the need for greater investment, the Shalamcheh-Basra project is currently the priority.

He stated that the total length of this railway project is only 32 kilometers, connecting Shalamcheh via a bridge to Sindbad Island in Iraq and then to Basra station. From Basra station onward, Iraq's existing rail network extends to Baghdad, allowing full connectivity.

The rail transport expert noted that there are currently 7 active commercial and passenger border crossings between Iran and Iraq, and trade volume between the two countries is estimated at around $11 billion. In addition, the large movement of pilgrims to holy sites in Iraq and Iraqi pilgrims to Mashhad doubles the need for safe, fast, and continuous transport infrastructure between the two countries.

He emphasized that what is currently more important for this project is its passenger transport angle, especially during the Arbaeen season when the movement of Iranian pilgrims to Iraq peaks. A continuous, non-stop rail line that eliminates the need for combined transport could revolutionize pilgrimage travel.

Shahjouei explained that currently passenger transfer to Iraq is done through a combination of train and bus. Once the continuous Shalamcheh-Basra rail line is operational, it could take a significant burden off road transport and help balance traffic between the two countries.

He added that despite the high capacity of this route, the Iraqi side has not yet shown much willingness to commercialize the Shalamcheh-Basra rail line. Currently, most of the efforts to launch passenger transport on this rail line are being made by Iran.

* Shalamcheh-Basra rail line: Connecting Central Asia to Iraq

The rail industry expert stated that if this route becomes operational and its passenger infrastructure is activated in the first phase, it could later be developed as a commercial route as well.

He added that the Shalamcheh-Basra rail line could serve as a connecting link for Central Asian countries, Afghanistan, and Pakistan to Iraq through Iran. In the past, this route was also seen as a potential link between Iran and the Mediterranean Sea via Syria, but given the developments in Syria, such a prospect is not currently conceivable.

Shahjouei emphasized that under current conditions, this project should be pursued with a focus on the bilateral relationship between Iran and Iraq. The first step is to complete and launch the route with the goal of transporting pilgrims to holy sites in Iraq and Iraqi travelers to Mashhad. Once operational, the commercial development of the route can be gradually explored.

He noted that it is possible for different countries to use this route. In the future, this line could play a complementary role for Iran's southern and northern ports and cover a portion of regional exchanges. However, one should not expect it to create a dramatic transformation in Iran's transit volume.

* Iraq's outdated rail infrastructure a barrier to commercial growth 

The transport expert added that the designed Shalamcheh-Basra railway route will ultimately have an annual freight capacity of 7 million tons. Even if operated at full capacity, due to the outdated infrastructure and capacity limitations of rail lines within Iraq, bottlenecks are likely to occur.

MA