U.S. Blockade Chokes Iran Trade as Land Routes Fail to Offset Hormuz Closure

The U.S. naval blockade has severed more than 80% of Iran's trade tonnage, which previously transited via southern ports and the Strait of Hormuz. U.S. Central Command said Sept. 20 it has redirected 109 commercial vessels to enforce the blockade, while Adm. Brad Cooper said 1 billion barrels of oil transited the strait over two months with zero Iranian exports. Land routes through Turkey, Pakistan, Afghanistan, Iraq and Turkmenistan have failed to compensate. Bureaucratic delays and inadequate infrastructure have stranded 3,700 trucks at one Turkish crossing, with waits exceeding three weeks. Cross-border trade with Turkey rose 19% to $3.2 billion in the first half, but Iranian customs data show non-oil exports fell 28% year-on-year to $15 billion in the five months ending Aug. 22, with imports down 26% to $17 billion. Inflation stands at 90%. The Iran-China Joint Chamber of Commerce estimates land transport costs four times sea freight, or about $18 billion in added annual costs. A Chamber of Commerce member said there is "little alternative but to find a way to restore" southern trade corridors.