New US sanctions on Iran have increased restrictions on banking, payments, insurance and transport, while traders are unable to pass on rising costs to consumers due to declining purchasing power
The imposition of even harsher US sanctions on Iran have coincided with serious disruption to regional transport routes, with major consequences for both imports and exports of fresh produce in Iran, according to Alireza Emami, CEO of Zarrin Group.
“The latest measures introduced by the Trump administration in September 2026 add another layer to an already difficult trading environment,” he told Fruitnet. “For agricultural trade, even where food products themselves are not directly sanctioned, restrictions affecting banking, payments, insurance, transport and the willingness of international partners to engage with Iran can make ordinary imports and exports considerably more complicated and expensive.”
The closure of the Strait of Hormuz has forced part of Iran’s trade to shift towards alternative road and rail routes, but these networks lack the infrastructure and capacity to replace the enormous volumes normally carried by sea.
“Lower capacity, border crossings, longer transit times and higher costs make these alternatives particularly challenging for perishable agricultural products,” said Emami. “The problem affects importers trying to bring produce into Iran, but also exporters who depend on reliable, fast and competitive routes to reach overseas markets.
“For fresh produce, it is not enough for an alternative route simply to exist. It also has to work in terms of time, capacity and cost. Every additional day in transit adds another element of risk when you are dealing with perishable products.”
Reefer vessels carrying Philippine bananas had been calling regularly at Iran via the Strait of Hormuz, but these have been suspended under current conditions. “As a result, the market has become more dependent on an alternative route that was already in use: Latin American bananas, particularly from Ecuador, are shipped to the Turkish port of Mersin and then transported by truck through Iran’s north-western borders,” revealed Emami.
The Mersin route has become more important, but it is not a cheap substitute, he cautioned. “Transit times are longer and additional handling and road transport are added to the supply chain,” he explained. “Higher oil and fuel prices are also putting pressure on ocean freight costs, while increased fuel costs for trucks carrying fruit from Mersin towards the Iranian border add another layer to the final landed cost of bananas.”
Meanwhile, the depreciation of Iran’s currency remains one of the greatest pressures on foreign trade. Since the beginning of 2026, the rial has lost around 40 per cent of its value against the US dollar.
“For importers paying for produce, freight and many other costs in foreign currency, this feeds directly into higher landed costs,” Emami said. “Exporters face a different set of challenges, including receiving and repatriating payments, banking restrictions, logistics constraints and the difficulty of planning in a highly volatile currency environment.”
Fresh produce traders are therefore dealing with several pressures simultaneously: fewer transport options, longer transit times, higher freight and fuel costs, payment difficulties and a substantially weaker currency. On the export side, restricted access to competitive logistics and international services can also make it more difficult for Iranian produce to maintain a consistent presence in overseas markets.
Yet perhaps the most important development concerns the end-consumer. “Despite all these additional costs, importers cannot necessarily pass them on to consumers,” Emami pointed out. “The decline in household purchasing power has become an undeniable reality in the Iranian market. In recent months, there have even been periods when bananas have been sold at a loss by importers, despite their higher landed cost, simply because the market could not absorb a further increase in price.”
At the same time, those Iranian traders that remain active have had years of experience in identifying alternative transport routes, sources and markets, as well as adapting to banking and logistical restrictions.
“Over time, adaptability and risk management have become essential parts of doing business in Iran,” confirmed Emami. “Zarrin Group has been no exception, having had to adapt its sourcing, logistics and trading routes repeatedly as conditions have changed. After so many years of sanctions, the question is no longer whether trade can continue. We have learned how to find alternatives and keep goods moving. The question now is how much additional cost, longer transit time and greater risk are required to keep that trade going.”
