Iran's Overland Trade Plan Fails as Trucks Strand at Borders

Iran announced it would circumvent the American blockade of the Strait of Hormuz by ramping up overland commerce, but on the ground the picture looks entirely different. Hundreds of Iranian truck drivers are currently stranded at the country's borders with Pakistan, Turkey, Turkmenistan and Afghanistan, unable to move their cargo forward.

According to a Wall Street Journal report, the drivers are facing severe bureaucratic obstacles and steep costs, many of them imposed by the Iranian government itself. The situation is repeating itself at every one of Iran's overland crossing points, dealing a serious blow to Tehran's plans to compensate for the maritime blockade.

Tons of dried apricots have spoiled due to the prolonged delays. Valuable shipments of iron ore, cement and bottled gas are stuck at entry points to the Pakistani and Afghan borders, drivers reported.

"Neither Iran is taking responsibility for the situation, nor is Pakistan allowing us to unload the cargo," one driver said in a video posted by the Iranian Truck Drivers and Drivers Union over the weekend.

The economic war in the Persian Gulf is being decided largely by the ability of regional states to move their exports overland rather than through the Strait of Hormuz. Some countries have found solutions: Saudi Arabia is moving more oil westward across the Arabian Peninsula, and the U.S. Navy is helping some Gulf states transport oil through the strait.

Iran's attempts are failing. The United States is isolating its economy through fresh sanctions and conducting strikes on Iranian tankers in retaliation for Tehran's attacks on its fleet, leading to the collapse of maritime exports.

In another blow to Iran's plans to bypass Hormuz, the airline Mahan Air, which is under American sanctions, announced Wednesday that it is suspending flights to Oman and Turkey, according to state-affiliated media in Tehran. Last week the U.S. Treasury Department imposed new sanctions on companies it says support Mahan, which operates cargo and passenger services.

The American blockade has also hit imports of basic goods into Iran, with 70% of them normally passing through the now-blocked ports. Although humanitarian products and food are supposedly exempt from the blockade, the reality is that shipping companies are reluctant to do business with Iran.

Videos posted on social media last week show cranes at the Shahid Rajaee Port, Iran's largest commercial container port, standing idle. Thousands of containers are stuck in ports in Pakistan, the United Arab Emirates and Saudi Arabia, transportation professionals in Tehran told the Mehr news agency, which is affiliated with Iranian security services.

Iran has tried to compensate by increasing trade on other routes. Crossings through the Caspian Sea have grown 70% in the past five months, according to Iranian official sources. Iran is importing large quantities of wheat, corn and cooking oil from Russia, according to data from the commodities information provider Kpler.