（Singapore, 08.05.2026）Iran is rapidly increasing cargo shipments by rail to China as it looks for ways to keep trade flowing amid a US-led blockade that has severely disrupted its ports and oil exports.
Since the blockade began on April 13, freight trains traveling from Xi’an in central China to Tehran have become far more frequent. Before the conflict, the route typically handled around one train per week. Now, trains are departing every three to four days as demand for overland transport surges.
The rail corridor, which passes through Kazakhstan and Turkmenistan, has become an important alternative lifeline for Iran as maritime trade routes face growing restrictions. Shipping companies and logistics firms say trains for May are already fully booked, with additional capacity expected in June, according to a Bloomberg report.
Still, industry experts note that rail transport can only partially replace Iran’s traditional sea trade. A single freight train carries about 50 standard containers, while one large cargo ship can transport thousands. Even so, the route is helping Iran secure essential imports and reduce the economic impact of the blockade.
Freight costs on the China-Iran rail route have climbed sharply in recent weeks. Shipping a 40-foot container now costs as much as US$7,000 (about S$8,870), roughly 40% higher than normal rates. The rising prices reflect strong demand from traders rushing to secure alternative supply channels.
Most of the cargo currently moving into Iran consists of industrial and consumer goods, including automotive components, generators, machinery, and electronics. Iranian officials are also exploring the possibility of using rail links to export petrochemicals and fuel products in the future.
The latest developments highlight Iran’s growing economic dependence on China. Beijing already purchases almost all of Iran’s oil exports, and now it is becoming an even more critical trading partner as Western pressure intensifies.
At the same time, China has tried to maintain a delicate diplomatic balance in the region. Since the conflict escalated in late February following US and Israeli attacks on Iran, Beijing has repeatedly called for a ceasefire while denying accusations that it has supplied weapons to Tehran.
China’s diplomatic activity has intensified ahead of an upcoming meeting between US President Donald Trump and Chinese President Xi Jinping. Chinese officials recently hosted Iranian Foreign Minister Abbas Araghchi and publicly called for the reopening of the Strait of Hormuz as soon as possible.
The Strait of Hormuz remains one of the world’s most important oil shipping routes. Ongoing tensions there have rattled global energy markets and raised concerns over supply disruptions.
Beyond the China railway, Iran has spent years building alternative logistics corridors to reduce its vulnerability to sanctions and military pressure. The country has expanded rail links with neighboring Afghanistan and is investing heavily in a north-south transport corridor connecting Iran with Russia.
Last year, Iran began exporting diesel by rail to Afghanistan for the first time through the Khaf-Herat railway line. China also launched a direct freight train route to northern Afghanistan, while Uzbekistan and Afghanistan later announced plans to extend rail connections closer to the Iranian border.
Iranian officials believe land transport could eventually handle up to 40% of the country’s usual maritime trade volume. Demand for trucking services from Turkey has also increased significantly since the blockade began, particularly for shipments of food and cooking oil.
Meanwhile, Iran’s weakening economy is creating growing domestic pressure. The country’s currency, the rial, has fallen to fresh record lows against the US dollar, fueling inflation and public frustration. Rising import costs and supply shortages are adding to the strain on households and businesses.
President Masoud Pezeshkian recently accused traders of profiteering and hoarding goods during the crisis, warning that authorities would take serious action against activities that threaten social stability.
While Iran struggles to maintain trade flows, another major development is quietly reshaping global energy markets as China sharply reduces its oil imports.
According to energy analysts and tanker-tracking data, China has cut crude oil imports by roughly 25% compared with prewar levels. Imports are estimated to have dropped from around 11.7 million barrels per day to about 8.2 million barrels daily.
The unexpected decline has helped stabilize global oil prices despite more than two months of conflict in the Persian Gulf. Benchmark crude prices have remained close to the US$100-per-barrel level rather than surging significantly higher.
Oil traders say Chinese state-owned companies have even begun reselling some cargoes to buyers in Europe and other parts of Asia, suggesting that supply conditions may not be as tight as expected.
Analysts believe several factors are contributing to the drop in Chinese oil imports.
One key reason is that China appears to have stopped aggressively building its strategic oil reserves. Over the past few years, Beijing accumulated enormous stockpiles estimated at nearly 1.4 billion barrels, far exceeding the reserves held by the United States or Japan. By simply slowing reserve purchases, China can reduce imports without immediately affecting domestic consumption.
There are also signs that China’s economic growth and fuel demand may be weaker than previously expected. Slower manufacturing activity, changing transportation habits, increased electric vehicle adoption, and greater use of remote work may all be reducing oil demand growth.
Another possible factor is China’s growing use of coal-based petrochemical production. Unlike many countries, China can produce certain chemicals and plastics using coal instead of oil-based feedstocks. Since the conflict began, profit margins for coal-to-chemicals production have improved significantly, potentially reducing demand for imported crude oil.
Even so, analysts caution that the full picture remains unclear. China’s energy market is notoriously difficult to track, and some experts believe Beijing may also be quietly drawing from hidden strategic reserves.
What is clear, however, is that China is playing an increasingly important role in balancing both Iran’s economic survival and the global oil market during one of the region’s most volatile periods in recent years.
