Iran's Economy Grinds to a Halt Amid US Blockade

The US naval blockade on Iran has severely impacted its economy, forcing the country to rely on land routes for trade. Before the war, more than 80% of Iran's trade tonnage transited through southern ports, but those have been closed off due to the blockade.

Convoys of trucks have flooded land routes along Iran's borders with Turkey, Pakistan, Afghanistan, Iraq, and Turkmenistan. Despite a significant increase in bilateral trade with some of these countries, overall trade is still down. Non-oil exports fell 28% from last year to $15 billion, while imports dropped by 26% to $17 billion.

The collapse in trade has resulted in gasoline shortages, leading Tehran to impose price hikes to curb demand. Industry members have admitted that the only way to restore economic stability is to reopen the Strait of Hormuz.