متتبع أزمة إيران-الخليج 2026
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economicMay 28, 2026

Transporting Oil to China by Rail Will Not Solve Iran’s Export Headache

Summary

As it struggles to ship oil through the Strait of Hormuz, Iran is looking for alternative land routes to import and export goods. In March, Iran exported 1.84 million barrels per day (BPD) to Asian customers, mostly China. Although some ships managed to evade the blockade, Iran still cannot transport as much oil as it produces each day. Iran is turning to railway routes through Central Asia as a safer passage for trade with China. While Iran can transport some of its oil over land by rail through Central Asia, it does not have the capability to transport the same amount as it can ship by sea. At best, moving oil over land would serve as a limited lifeline for Iran to sustain itself until the war is over. Operating since May 2025, a 10,400-kilometer China-Iran railway corridor stretches from the Chinese city of Xi’an to Tehran. The railway passes through Kazakhstan, Kyrgyzstan, Uzbekistan, and Turkmenistan before arriving in Iran – taking approximately 15 days as opposed to a month by sea. Bloomberg reports that cargo shipments from Xi’an to Tehran have increased from one per week to “one every three to four days” since the beginning of the U.S. blockade in April. In recent years, China, Iran, Russia, and other countries built and expanded railway routes across Central Asia. Officials from China, Kyrgyzstan and Uzbekistan announced in 2024 the long-awaited implementation of the 523-kilometer China-Kyrgyzstan-Uzbekistan (CKU) railway corridor, with China providing a $2.35 billion loan and a majority stake. In November 2025, Interfax reported that the first freight train from Russia to Iran arrived in Aprin, outside Tehran, after a 12-day journey through Kazakhstan and Turkmenistan. According to the Central Asia-Caucasus Institute (CACI), prior to the war, Iran and Turkmenistan agreed to lay additional tracks at the Sarakhs station in northeastern Iran, bordering Turkmenistan, to increase the volume and speed of cross-border shipments. China and Iran are also collaborating on the electrification of a 1,000-kilometer railway in Iran from the city of Sarakhs to Razi, bordering Turkiye. The route across Central Asia could present Iran with a fast-moving economic lifeline if U.S. forces further restrict passage through Hormuz. But this will not be enough to relieve Iran of the pressure of the blockade. First, rail shipments run mostly from China to Iran, transporting industrial and consumer goods, not Iran to China. While this can be switched to allow more rail shipments to China, Iran may need to sacrifice importing goods it needs – an unlikely scenario amid the blockade. Second, the locations of Iran’s oil fields and China’s oil refineries are not favorable to the transport and sale of Iranian oil through Central Asia. Most of Iran’s oil fields are in the south, and ships move Iran’s exported oil to the eastern coast of China to be refined in “teapot” refineries. While there are oil refineries in western and central China, they are currently refining domestic or imported oil from other countries and cannot refine as much oil as the large ones on the coast. Third, while transporting oil by rail to China is faster and safer, the payoff is not ideal. The average shipment of oil by rail is between 60,000 and 70,000 barrels. Iran can also transport between 250,000 and 300,000 bpd if it exports oil to additional countries like Turkiye, Pakistan, Afghanistan, and Uzbekistan. In comparison, even with the risk of being caught or captured, the average tanker can move more than 600,000 barrels, and a Very Large Crude Carrier (VLCC) can transport more than 2 million barrels. If Iran decides to send oil to China by rail (figure 70,000 barrels per shipment) at a discounted rate (between $75 and $100 per barrel), it could generate between $5.25 million and $7 million per shipment. If the number of shipments increases two to three times per week, Iran could see revenue from $10.5 million to $21 million after the two-week journey. However, there is a lack of available data showing that Iran even has the capacity to transport that much oil by rail. After dividing the revenue, it would fall short of the billions of dollars the IRGC received in oil revenue in 2025. As the war and the blockade of the Strait of Hormuz carries on into another month, Iran has the option to transport oil to China by rail routes through Central Asia. If implemented, the plan would give Iran the ability to safely transport oil to its single largest customer in a short period of time. However, Iran will not be able to export enough oil to fully replace what it can deliver more effectively by sea. China and Iran can work together in the future to make this a more attractive option, but neither can do anything about it while the war continues. Such a plan will serve as an emergency lifeline rather than a solution for Iran’s oil headache.

Perspectives

Iranian Official

In response to the illegal U.S. blockade and aggression targeting the Strait of Hormuz, Iran upholds its sovereign right to export oil and goods by developing secure overland routes through Central Asia. The operational 10,400-kilometer China-Iran railway corridor via Kazakhstan, Kyrgyzstan, Uzbekistan, and Turkmenistan has boosted cargo shipments to our strategic partner China, increasing to one every three to four days since April. This infrastructure demonstrates Iran's resilient resistance against foreign interference while sustaining trade independence.

Israeli

Iran's push to reroute oil exports via Central Asian rail corridors, including the expanding 10,400-km China-Iran line through Kazakhstan, Kyrgyzstan, Uzbekistan, and Turkmenistan, reveals Tehran's bid to sustain revenues that bankroll its proxy network of Hezbollah, Hamas, and the Houthis. These land alternatives, now shipping cargo every three to four days, underscore the regime's determination to evade pressure in the Strait of Hormuz and preserve capabilities that directly threaten Israel's survival. Defensive actions to disrupt such lifelines remain essential to neutralize this axis of aggression before it can fully rearm.

Neutral

Iran exported 1.84 million barrels per day to Asian markets in March, mostly to China. A 10,400-kilometer railway linking Xi’an to Tehran via Kazakhstan, Kyrgyzstan, Uzbekistan, and Turkmenistan has operated since May 2025, with reported transit times of about 15 days. Bloomberg stated that shipments on this corridor rose from one per week to one every three to four days after April, though land routes have lower capacity than sea transport.

Western

Iran's attempts to reroute oil exports via Central Asian rail corridors, including the Xi’an-Tehran line, reflect a constrained workaround to Western-led precision operations enforcing restrictions through the Strait of Hormuz. With maritime shipments curtailed since April, Tehran’s land-based alternatives through Kazakhstan, Uzbekistan, and Turkmenistan provide only fractional capacity compared to its 1.84 million BPD pre-blockade exports, primarily to China. This limited overland lifeline underscores the strategic effectiveness of targeted interdiction in neutralizing Iranian revenue streams while advancing broader containment objectives.

Pro-Peace

The U.S. blockade of the Strait of Hormuz has crippled Iran's oil exports, driving up costs for essential goods and deepening hardships for civilians already strained by sanctions and conflict. Forced to reroute limited trade via lengthy Central Asian railways, Iran can only sustain a fraction of its needs, highlighting how military measures inflict widespread economic suffering on ordinary people. Renewed diplomatic efforts to lift the blockade and resolve tensions peacefully offer the only path to easing these humanitarian costs.

Global South

Iran asserts its sovereignty by rerouting oil and goods exports via the 10,400-kilometer China-Iran railway through Central Asia, bypassing the US-imposed blockade of the Strait of Hormuz that has curtailed maritime shipments since April. This land corridor, operational since 2025 and supplemented by the China-funded CKU line, enables limited but growing cargo flows to China in roughly 15 days, exposing how unilateral Western sanctions function as neo-colonial tools to constrain Global South economies. The shift highlights the persistent failure of international institutions to counter such hegemonic interference and protect independent trade routes.

Actors involved

IranChina

Sources

  • currentsapi(Mixed)By Justin Mitchell

    As it struggles to ship oil through the Strait of Hormuz, Iran is looking for alternative land routes to import and export goods. In March, Iran exported 1.84 million barrels per day (BPD) to Asian customers, mostly China. Although some ships managed to evade the blockade, Iran s

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