Indonesian Political, Business & Finance News

Iran-China Trade Shifts to Rail Amid Hormuz Strait Blockade

| | Source: KOMPAS Translated from Indonesian | Trade
Iran-China Trade Shifts to Rail Amid Hormuz Strait Blockade
Image: KOMPAS

Iran is beginning to increase trade with China via rail routes to reduce the impact of the United States (US) blockade on its ports. This step is being taken as economic pressure on Tehran intensifies due to war and international trade restrictions. According to sources familiar with the shipments, the number of freight trains from Xi’an, China, to Tehran has risen sharply since the blockade began on 13 April 2026. Before the conflict, there was only about one train per week. Now, trains depart every three to four days. The value is around 40 percent more expensive than normal rates. The rail route passes through Kazakhstan and Turkmenistan before entering Iran. Nevertheless, the capacity of the land route is still considered far from sufficient to replace the disrupted sea route due to the US blockade. For the time being, trade via rail is still dominated by shipments of goods from China to Iran. The train cargoes include automotive spare parts, electric generators, and electronic products.

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