Initial reports following the outbreak of the latest conflict in the Middle East, this time between Iran and Israel, indicated minimal impact on Iranian exports, but exporters were already concerned about a rapid deterioration in the situation. Today, those fears have materialized, and the export season for several products is nearing a standstill.
Hossein Vasei, director of international trade development at Zaravaran Group, shares an update on the situation: "The war is slowing down the economy and exports. Logistics are slow and risky. While ports are technically operational, their efficiency has dropped. Customs clearance is slow, inspections have intensified, and access to containers or reliable shipping routes is limited. Many companies have no choice but to rely on informal networks or risky intermediaries to stay afloat."
The war is exacerbating the difficulties faced by Iranian exporters, who have long been handicapped by the economic sanctions imposed on the country. Vasei says: "Domestically, we are facing currency volatility, banking restrictions, unpredictable regulations, raw material shortages, and rising costs. Financial and banking sanctions have blocked or severely slowed most official payment channels, making transactions risky and costly. Externally, there is a lack of confidence and growing risk aversion on the part of foreign buyers. If I were to speak honestly and realistically about the current state of Iran's foreign trade, I would say that we are currently going through one of the most complex and stressful periods in our history."
"From a quantitative perspective, we can say that the actual volume of foreign trade, particularly non-oil exports, has fallen to 30-40% of what would be considered normal under stable conditions. We are moving forward with the brakes on," Vasei concludes.
Currently, the scope of the strikes on Iran is expanding, affecting logistics and energy infrastructure. An internet blackout and flight shutdown continue to isolate exporters. Even worse, the possibility of closing the Strait of Hormuz is growing closer, and if it happens, it will be a devastating blow not only to Iranian exports but to the global economy.
For more information:
Hossein Vasei
Zaravaran Group
Tel: +98 915 689 3506
Email: [email protected]