Can Iran shift trade north to Caspian Sea as war impairs Strait of Hormuz?
Summary
Iran is trying to shift its oil exports and imports from its southern ports to the Caspian Sea in the north. This change comes after a U.S. naval blockade and strikes affected southern routes, but challenges like low water levels and border congestion make northern trade difficult.Key Facts
- The U.S. Navy blocks Iran’s southern ports, limiting Iran’s access to global trade.
- Iran wants to use the Caspian Sea, shared with Russia and others, for shipping goods.
- Water levels in the Caspian Sea have dropped about 2 meters since the 1990s, causing shipping problems.
- Lower water levels mean Iranian ports can only handle smaller ships than before.
- Ships entering the Caspian Sea through Russia’s Volga River sometimes get stuck due to low water.
- Iran’s land borders, especially with Armenia, have long truck queues causing delays of days or weeks.
- Congestion at borders is made worse by limited facilities, customs, road conditions, and airline sanctions affecting passenger flows.
- Rail connections to some neighboring regions remain closed, dependent on peace agreements and infrastructure projects.
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