Since the joint U.S.-Israeli military campaign and the ensuing American naval embargo began in February, Iran has progressively shifted trade that traditionally moved through the Strait of Hormuz toward overland routes, leaning heavily on border crossings with neighbors such as Türkiye. However, inadequate infrastructure, protracted customs inspections, and the constant threat of U.S. secondary sanctions have turned this pivot into a logistical ordeal, pushing up prices for consumers already grappling with high inflation.
Iran's annual two-way trade volume of roughly 180 million tonnes once relied on southern Gulf sea lanes for over 80% of its movement. With U.S. Navy blockades disrupting Hormuz shipping, Tehran has revived its decades-old playbook for sanctions evasion, directing goods through its land borders with seven nations, primarily Türkiye. Inbound consumer products, animal feed, and pharmaceutical ingredients continue to flow while exports like aluminum, asphalt, construction materials, and detergents move outward.
Türkiye's official data shows bilateral trade climbed 19% year-on-year in the first half to $3.2 billion. On the Iranian side, customs figures indicate imports through the Gurbulak crossing alone jumped 250% during the five months ending August 12. The surge has overwhelmed checkpoints. Iranian trucker Asghar explained that many loads once destined for Hormuz now go overland, extending wait times dramatically. He spent an entire night queued at the Gurbulak gate in Türkiye before driving his empty tanker back home, having previously delivered asphalt to Turkish buyers.
Roughly 500 trucks now enter Iran from Türkiye daily, a year-on-year increase of about 30%, yet drivers report waiting weeks in line. Turkish driver Yakup said returning to his home country can take up to 24 days, so he plans to fly back, rest, and then retrieve his vehicle later. Ali Akbar Zarif, vice president of Iran's truck drivers' cooperative, pointed out that even border posts far from the conflict zone and undamaged by strikes suffer chronic delays, demanding better management.
Alternative crossings present their own headaches. Pakistan's border capacity is limited and in poor condition, while Afghanistan's Dogharoun post saw 23-day waits in mid-June. Iraq briefly closed two key checkpoints last Saturday following a drone strike on a Saudi east-west oil pipeline, though they reopened days later.
Secondary sanctions are tightening further. Last week, Washington blacklisted 27 Iranian airlines and three Turkish air freight companies, accusing them of moving weapons, personnel, and illicit cargo for Tehran. Warnings to financial institutions about dealing with these entities could severely restrict Iran's limited air connectivity. On Wednesday night, Türkiye's Savings Deposit Insurance Fund took over Golden Global Bank, marking the first major regulatory action there since U.S. sanctions targeted the lender over its Iran-linked transactions.
Turkish Finance Minister Mehmet Şimşek acknowledged Washington's moves, insisting all Turkish companies must fully comply with national law. He also noted that Ankara imports about $2.5 billion of natural gas annually via pipeline but does not pay Tehran directly; funds go into a "closed account" agreed with the U.S., usable only for sanctioned-approved purchases like food and medicine.
Iran has been cut off from the international financial system since Washington's "maximum pressure" campaign began. The blockade restricts crude sales, though officials insist oil revenue still flows, partly thanks to a brief mid-June exemption that allowed Tehran to move roughly 80 million barrels outside the blockade zone, now stored as floating inventory. Even so, Iranian customs data shows non-oil exports fell 28% year-on-year to $15 billion in the five months through August 22, while imports dropped 26% to $17 billion.
A senior member of Iran's chamber of commerce argued that, in these circumstances, there is little choice but to find a way to restore and maintain the southern trade corridor through the Gulf. At Gurbulak, under the shadow of Mount Ararat, the crossing's importance has never been greater. Trucks from Scania, Mercedes, and MAN line the roadside, some hauling used cars from Türkiye's Mediterranean port of Mersin for repair and resale in Iran, others loaded with furniture or chemicals. Drivers sip tea and scroll through smartphones while waiting.
Driver Farshid recounted hauling Iranian aluminum into Türkiye and now carrying Turkish PVC back to Iran, sometimes as far as Bandar Abbas. He said they drive past bombed roads, tunnels, and bridges, but travel times remain unchanged—they have grown accustomed to the danger. He also heard that Turkish airports may soon close to Iranian airlines given the latest U.S. sanctions, and rumors circulate among trucker friends that Türkiye's land borders could follow. America and Türkiye are close allies, he noted, and the two presidents are good friends—so anything is possible.
Where to begin
For importers and exporters seeking alternative logistics, the immediate focus should be on Türkiye's Gurbulak and Kapıkule crossings, which offer the most developed infrastructure and frequent traffic, though capacity remains strained. Firms must factor in 20-plus day wait times and rising storage costs. For perishables or time-sensitive goods, air freight via approved carriers is increasingly unreliable due to sanctions, so land routes via Pakistan or Afghanistan are the only alternatives, despite their poor conditions.
Why the reliance on a narrow set of borders matters
Iran's overland pivot is not a sustainable solution. The heavy dependence on Türkiye exposes trade to political shifts in Ankara, while secondary sanctions on airlines and banks create constant legal risk for any intermediary. The sharp drop in both exports and imports, combined with the infrastructure bottlenecks, suggests that until the Gulf corridor reopens, Iran's foreign trade will remain constrained, and domestic prices will keep climbing under the weight of higher transport costs.
Key data points to watch
Monitoring monthly customs reports from Iran and Türkiye will reveal whether the trade rebound persists or falters. Truck queues at border posts, fuel price changes, and the status of the "closed account" mechanism are critical indicators. Investors and traders should also track whether the U.S. expands sanctions to cover more Turkish entities, as that would likely trigger further disruption in regional supply chains.
Lessons for regional trade partners
The experience underscores the fragility of relying on a single corridor. Türkiye, Iraq, and Pakistan each have limited absorption capacity, and their border infrastructure was not built for this volume. Governments in the region may need to invest in expedited customs procedures or risk permanent damage to trade flows. Meanwhile, Iran's use of floating storage for crude highlights how creative measures can partially offset blockades, but cannot replace functioning trade routes.
Bottom line
Iran's shift to overland trade is a stopgap, not a fix. While it keeps some goods moving, the massive delays, higher costs, and sanctions exposure make it a costly alternative to sea lanes. Without a diplomatic resolution to the blockade or a major upgrade in regional border infrastructure, Iran's trade volumes are likely to remain compressed, and its citizens will continue bearing the burden of elevated prices.