Iran Attempts to Export Oil to China by Rail Amid U.S. Blockade Pressures
Choked off at sea by a U.S. naval blockade, Tehran is desperate. A new report reveals Iran is now attempting to bypass the Strait of Hormuz by shipping crude oil across the continent via rail, a high-cost, low-volume "Plan B" to keep the Chinese economy fueled.
Iran is attempting to ship crude oil by rail to China as it faces disruptions to its maritime exports due to a U.S. naval blockade affecting the Strait of Hormuz, according to the Wall Street Journal.
Hamid Hosseini, spokesman for Iran’s Oil Exporters Union, told the WSJ that Tehran is trying to move oil overland via existing rail links connecting Tehran to Chinese cities such as Yiwu and Xi’an.
The rail corridor between Iran and China has been operational since around May 2025. It can shorten transit times to roughly 12–15 days compared to 30–40 days by sea, but volumes remain limited compared to tanker shipments.
This move comes as Iran deals with a buildup of unsold oil. The country is reviving derelict storage tanks and using improvised containers in areas like Ahvaz and Asaluyeh to manage excess crude while sea exports are curtailed.
China remains Iran’s primary customer, buying the vast majority of its oil exports, around 1.38 million barrels per day in 2025.
Rail transport is generally less cost-effective and lower-volume than seaborne shipments, particularly for buyers like China’s independent “teapot” refineries. Most oil exporters prefer tankers for bulk crude.
No official figures on current rail export volumes were immediately available.