US Naval Blockade Forces Iran to Rely on Alternative Trade Corridors

A US naval blockade has severely impacted Iran's traditional trade routes through the Strait of Hormuz, prompting Tehran to explore alternative corridors. The country shares approximately 6,000 km of land borders with seven nations and has about 700 km of Caspian coastline, offering access to new trade paths via Türkiye, Pakistan, the Caucasus, Central Asia, and Russia.

Since the blockade began in April, Pakistan has opened land routes from Gwadar, Karachi, and Port Qasim for cargo bound for Iran. Türkiye offers the Kapıköy, Razi crossing, while Russia has increased Caspian shipments to Iranian ports, including alleged sanctioned military cargo.

The International North-South Transport Corridor (INSTC) provides road, rail, and maritime options, with Iran exploring rail routes for oil exports to China. However, these corridors face challenges, such as trucking costs and capacity constraints at Caspian ports and vessels.

Iran's oil exports are particularly vulnerable, with China absorbing more than 80% of the country's seaborne oil exports. Chinese imports have declined significantly since 2025, from approximately 1.4 million barrels per day to 534,000 bpd in August.