Iran-Iraq trade route opens amid Jebel Ali disruptions: Chamber head
The head of the Iran-Iraq Joint Chamber of Commerce said the Islamic Republic had activated alternative trade routes, including through Iraq, to move goods and fulfill new orders after disruptions on the vital commercial corridor through the United Arab Emirates' Jebel Ali port.
Yahya Al-e Es'hagh, who heads the chamber, told Iran's Mehr news agency that the recent problems in the Strait of Hormuz have impacted non-oil trade flows through the UAE.
"About $12 billion worth of goods pass annually from the UAE and the Jebel Ali region into Iran's trade cycle and from there to various destinations," Al-e Es'hagh said. "The volume of Iran's trade via the UAE is around $20 billion. With the recent situation, this process has faced problems — both for goods currently in Jebel Ali and for new orders that need to be placed."
He added that negotiations with Iraqi side are underway to resolve the issue, and that facilities are being arranged to address part of the problem for existing goods via Iraq. "Other routes, including Karachi, India, and other origins, are also being examined and used — Iraq is one of them, and we are pursuing and resolving that," he said.
Iran has in recent years conducted a significant portion of its imports and transit trade through the UAE's Jebel Ali port, which has historically served as a key hub for its commercial exchanges. However, following recent disruptions in trade flows, regional ports in Pakistan, India, and Oman have emerged as alternatives, with Iranian cargo and logistics operations being redirected there.
Iran's own southern ports are also under a US naval blockade, which President Donald Trump imposed in mid-April to pressure Tehran into a peace agreement after a 40-day US-Israeli war that began in late February.
Turning to bilateral trade with Iraq, Al-e Es'hagh said there is no major problem in the volume of Iranian exports to its neighbor. "Last year, about $12 billion in official trade was conducted between the two countries. This year, trade has decreased slightly, mainly due to a reduction in gas exports." He estimated that trade volume excluding gas would be around $9 billion this year, adding that if the gas export issue is resolved, the figure could return to last year's level.