Iraq Becomes Iran’s Trade Escape Route Amid Regional Shipping Crisis (opens original article in a new tab)

Iraq is becoming a key trade route for Iran due to regional shipping challenges, with increased cross-border trade and infrastructure developments aiming to ease economic pressures.

• Iran relies on Iraq as an alternative trade corridor due to maritime restrictions and regional tensions.
• Iraq's border crossings handle significant trade, with 9.6% of Iran's foreign trade passing through Iraqi borders in the last fiscal year.
• Iraq is developing ports like Grand Faw to enhance its role as a regional logistics hub, while bilateral trade agreements aim to increase annual trade to $20 billion.
• Procedural and regulatory barriers hinder trade expansion, but improvements in customs coordination and transit regulations are being pursued.