The massive explosion that rocked Shahid Rajaee Port in the southern Iranian province of Hormozgan on Saturday may have a sharp short-term impact on Iran's economy due to the temporary disruption to the country's most important container hub, two Iranian experts said on Monday in Tehran.
Saturday's blast destroyed key infrastructure, including gantry cranes, warehouses, and storage facilities. While oil refineries and pipelines were spared, the port's cargo-handling capacity -- 80 million tons annually, including 49 million tons of non-oil goods -- was crippled.
The port is not only a key shipping and trading artery in Iran, a major oil exporter, but also strategically located on the northern shore of the Strait of Hormuz, through which 20 percent of oil trade passes, making it vital for international trade.
"Nearly 30 million tons of the imported oil products, around 20 million tons of imported container cargo, about 20 million tons of construction materials, and approximately one million tons of staple commodities like barley, wheat and sugar, move through this port, highlighting the critical role of Shahid Rajaee Port," Ehsan Zakernia, an Iranian economic analyst told China Global Television Network (CGTN) in an interview.
The blast took place as Iran's economy, already suffering under years of U.S. sanctions, is facing even greater strain under Trump's pressure campaign.
However, some believe that the impact on the country's economy will not last long, as the government strives to tackle the vulnerabilities in critical infrastructure.
"In the short-term, there will certainly be economic impacts. However, over time and with the necessary reconstruction efforts, these effects will undoubtedly be eliminated. Overall, the impact will be temporary, as other sections of the port continue customs operations," Hossein Kakhki, former director general of the International Cooperation Department of Iran.
The death toll from the explosion at the port, located in the provincial capital Bandar Abbas, has so far risen to at least 70, with over 1,200 injured, Iranian state media said on Monday.
The fire has been completely contained, while the rescue and relief operations were still ongoing, the semi-official Mehr news agency reported on Monday, citing the provincial governor.
Earlier in the day, Iran's Interior Minister Eskandar Momeni identified "certain negligence" as one of the reasons behind the deadly explosion.
Despite the incident, the port's wharfs have resumed operations and cargo handling, according to the official news agency IRNA.
Port blast to have short-term impact on Iran's economy: Iranian experts
