Iran Business Leader: Blockade Worse Than War

Majidreza Hariri, head of the Iran-China Joint Chamber of Commerce, stated that a U.S. naval blockade will inflict more economic damage on Iran than a direct war, according to an interview with Iran's Khabar Online outlet. Hariri elaborated that the current economic crisis and shortages under the blockade are more severe than those experienced during a recent 40-day war. He emphasized that Iran must find a resolution to the blockade through negotiations, appeals, threats, or even by renewing conflict with the United States, as attempting to circumvent it would lead to dangerous spillover effects. Hariri cautioned that the "worst thing that could happen today is believing that the naval blockade can be circumvented and attempting to govern the country despite its continuation." He drew parallels to Iran's decades of experience with Western sanctions, where methods used to skirt them ultimately resulted in a weakened economy and widespread corruption. The U.S. naval blockade is projected to incur significant short-term costs. Hariri cited an example where transporting a single container between Iran and China by sea costs approximately $3,000. However, bypassing the blockade via land routes would escalate this cost to $12,000 per container. Given that Iran's southern ports handle 2 million containers annually, Hariri estimated that these increased trade burdens would translate to an additional $18 billion in transportation costs each year. While relying on land routes might ensure short-term survival by providing essential goods, Hariri predicted that the Iranian economy would eventually "grind to a halt." He also indicated that Iran would likely retaliate against continued U.S. pressure rather than passively endure the economic strain. The assessment from Iran's business sector highlights the profound economic implications of the U.S. blockade, suggesting a potentially devastating impact on the nation's financial stability and trade infrastructure. The comparison to war underscores the severity of the economic sanctions, framing them as a more insidious and damaging threat to Iran's long-term prosperity and governance. The projected increase in transportation costs alone represents a substantial economic burden, impacting the cost of goods and the overall flow of trade. The warning about corruption and economic weakness stemming from evasion tactics further illustrates the complex and detrimental nature of the blockade's effects on Iran's economic landscape.