Port blast deals $4B blow to Iran's economy

Shafaq News

30-04-2025

Shafaq News/ Explosions at Iran's Shahid Rajaee port have caused an estimated $4 billion in economic losses—equivalent to roughly 2% of the country's GDP, Iranian media reported on Wednesday.
The daily Donya-e-Eqtesad cited an academic study placing the economic damage from the port disruption at 324 trillion tomans, based on an exchange rate of 80,000 tomans to the US dollar.
As Iran's main maritime hub, Shahid Rajaee port handles about 60% of the country's seaborne trade and manages over 53% of total cargo loading and unloading operations. The study described it as the most vital artery in Iran's commercial infrastructure.
Given that 70% of Iran's imports and 30% of its non-oil exports move through national ports, any prolonged halt at a facility of this scale, the report warned, would trigger far-reaching consequences.
The explosions and subsequent fires inflicted heavy damage on stored goods and infrastructure. Analysts attributed the extent of the losses to the backlog of thousands of containers filled with raw materials and strategic commodities, which had remained at the docks for months due to ineffective customs procedures and currency restrictions.
The study warned that a 90-day shutdown of Shahid Rajaee would severely disrupt domestic supply chains, particularly in critical sectors such as chemicals, petrochemicals, automotive manufacturing, and food production. In some industries, losses were projected to reach several trillion tomans.
On April 26, 2025, a powerful explosion followed by a large fire struck Iran's Shahid Rajaee Port near Bandar Abbas, killing at least 70 people and injuring more than 1,200. The blast, which reportedly began in a cluster of containers at the port's wharf—potentially storing hazardous materials—caused significant destruction and severely disrupted port activities.