A partial view of the Kalantari port in city of Chabahar on May 12, 2015. Chabahar, located on the coast of Sistan-Baluchistan (south-east), is open to the Oman Sea and the Indian Ocean. It is Iran's gateway to Pakistan and Afghanistan in the east, the Central Asian countries to the north, and Turkey and the Gulf countries in the west. Picture: AFP
Image: Picture: AFP
When discussing global trade corridors, Iran rarely takes center stage. Yet, for centuries, it has been a key player in the movement of goods across continents, straddling major land, air, and maritime routes.
As geopolitical dynamics shift and new trade corridors emerge, Iran’s strategic position is becoming increasingly important. It is not just a bridge between East and West but also a crucial node in modern freight, air, and maritime transportation networks. With its recent inclusion in BRICS+, Iran has a unique opportunity to leverage this membership to assert its role in global trade, even in the face of ongoing sanctions.
Geopolitical Advantage and BRICS+ Membership
Iran occupies one of the most strategic locations in the world. Sandwiched between the energy-rich Middle East, Central Asia, and the Indian subcontinent, Iran's road and rail networks are integral to many of the region's most ambitious trade initiatives. Its BRICS+ membership provides Iran with a platform to deepen economic ties and bypass Western-led sanctions.
BRICS+ offers Iran access to alternative financial systems, such as the New Development Bank (NDB), the Contingent Reserve Arrangement (CRA) and BRICS Pay, which can help fund critical infrastructure projects. The bloc’s focus on de-dollarisation and trade in local currencies reduces Iran’s reliance on the U.S. dollar, mitigating the impact of sanctions. By aligning with BRICS+, Iran strengthens its position as a transit hub and attracts investment from member nations eager to diversify trade routes and reduce dependency on Western-dominated systems.
The International North-South Transport Corridor (INSTC)
A prime example of Iran’s strategic importance is its role in the International North-South Transport Corridor (INSTC). This 7,200 km multi-modal network of ship, rail, and road routes connects India and Russia, with Iran playing a pivotal role as the central hub. The INSTC offers a faster and cheaper alternative to the traditional Suez Canal route, cutting cargo travel time by nearly 40%.
Through BRICS+, Iran can further collaborate India and Russia to further develop the INSTC. India’s investment in the Chabahar Port, a vital node in the INSTC, underscores the potential for deeper cooperation. By leveraging BRICS+ partnerships, Iran can modernise its rail and road infrastructure, enhance customs procedures, and streamline cross-border trade, making the INSTC a more attractive option for global shippers.
Expanding Rail Networks and Regional Integration
Iran’s burgeoning rail network is also worthy of attention. The Khaf-Herat railway project linking Iran and Afghanistan is an important milestone, not just for regional integration but also for landlocked Afghanistan’s access to international markets. Similarly, Iran’s rail connections to Turkmenistan and the Caucasus enhance its importance as a transit corridor for goods heading to Europe from Central Asia.
BRICS+ membership provides Iran with opportunities to secure funding and technical expertise for further rail expansion. China’s Belt and Road Initiative (BRI) aligns closely with Iran’s infrastructure goals, and as a BRICS+ member, Iran can attract more BRI-related investments.
Maritime Trade and the Strait of Hormuz
Iran’s location along the Persian Gulf and the Gulf of Oman grants it control over one of the most critical maritime chokepoints in the world—the Strait of Hormuz. In 2024 approximately 30% of the world's seaborne-traded crude oil passed through the Strait of Hormuz every day.
Iran’s maritime trade capabilities extend beyond oil. The Chabahar Port in southeastern Iran, developed with Indian support, is a vital access point to the Indian Ocean. Unlike other regional ports, Chabahar allows India to bypass Pakistan when accessing Central Asian markets. Through BRICS+, Iran can attract investment in its maritime infrastructure, particularly from India and China, both of which have strategic interests in the Indian Ocean region. By expanding its shipping fleet and modernising its ports, Iran can position itself as a key player in global maritime trade, even under sanctions.
Overcoming Sanctions Through BRICS+
Sanctions have undoubtedly hampered Iran’s infrastructure development and international partnerships and the new wave of sanctions issued this February by the Trump administration continues to hamper the nation's progress. Iran’s BRICS+ membership however signals new hope by providing Iran with a pathway to circumvent these challenges. By fostering closer economic ties with BRICS+ nations, Iran can access alternative financial systems, attract foreign investment, and diversify its trade partnerships. The bloc’s emphasis on multilateralism and economic cooperation aligns with Iran’s strategic goals, enabling it to assert its role in global trade despite external pressures.
A Transportation Trifecta with Untapped Potential
Iran's land, air, and maritime corridors collectively form a transportation trifecta that rivals any nation. Whether moving goods through the INSTC, facilitating air traffic between continents, or controlling access to critical waterways, Iran’s significance to global trade is undeniable. With its BRICS+ membership, Iran has a unique opportunity to overcome sanctions and unlock its full potential as a global trade hub.
As the world reconfigures its trade routes in response to global challenges, Iran's strategic position will only grow in importance. By leveraging its BRICS+ membership, Iran can assert its role as an essential player in the future of global commerce, transforming itself from an under utilised power into a cornerstone of the new global trade order. Through enhanced infrastructure, regional integration, and strategic partnerships, Iran is poised to reclaim its historic role as a linchpin of global trade.
Written by:
*Dr Iqbal Survé
Past chairman of the BRICS Business Council and co-chairman of the BRICS Media Forum and the BRNN
*Chloe Maluleke
Associate at BRICS+ Consulting Group
Russian & Middle Eastern Specialist
**The Views expressed do not necessarily reflect the views of Independent Media or IOL.