Iran has closed the Strait of Hormuz. This is a very important sea route in the Persian Gulf, through which about 20 percent of the world’s oil supply passes. Iran’s powerful army Islamic Revolutionary Guard Corps (IRGC) has said that this route is now closed for ships and if any ship tries to pass through here, it can be targeted. After this, tension has increased in the global oil market.
According to the report of Business Standard, in the situation of war breaking out in the Middle East, China is being discussed the most because it is the biggest oil buyer of Iran. In the year 2025, China had imported about 13.8 lakh barrels of Iranian crude oil every day. This quantity is more than 80 percent of Iran’s total oil exports. According to statistics, Iran exports about 17 lakh to 21 lakh barrels of oil daily, most of which goes to China. In such a situation, if the Strait of Hormuz remains closed for a long time, the Iranian oil supply to China via sea may be affected.
Iran-China rail network
However, the situation is not completely against China because it had started preparations many years ago to reduce its dependence on sea routes. Rail connectivity has existed between China and Iran for the last decade. In December 2014, the rail link between Kazakhstan, Turkmenistan and Iran was started, creating a direct land link from China to Iran. In February 2016, the first goods train from China directly reached Iran. This train started from the Chinese city of Yiwu and covered a distance of about 10,399 kilometers and reached Tehran in about 14 days. This route originates from Xinjiang region of China, passes through Alatav Pass, passes through Kazakhstan and Turkmenistan and reaches Iran. While it takes 30 to 40 days for goods to reach the sea route, the time taken by rail route is around 14 to 15 days.
What is Silk Road Train?
According to Iran’s Transport Minister Mohsen Pour-Aqaei, this train was also called the Silk Road Train and its purpose was to reinvigorate the old Silk Road trade route. The train reaches Eprin Dry Port near Tehran, a large inland cargo terminal from where goods can be shipped throughout Iran. In March 2021, China and Iran also signed a strategic agreement worth about $400 billion for 25 years. This agreement covers many areas like trade, energy, infrastructure and military cooperation. Under this agreement, both the countries further strengthened the railway route so that trade can continue even if there is obstruction in sea routes.
Train from China had reached Iran
In June 2025, Iran’s Mehr news agency reported that a new business freight train was launched from the Chinese city of Xi’an, covering a distance of about 5,300 kilometers and reaching Eprin dry port near Tehran. According to Iranian officials, this rail route is away from maritime areas with US military presence, so even if maritime trade is disrupted, trade between China and Iran can continue. However, this system also has some limitations. About 90 percent of Iran’s exports to China are oil and related products, such as petrochemicals and gas. Such a large oil business is not completely possible through rail, because crude oil is generally sent in large quantities by ships. Nevertheless, the rail route provides an alternative route for non-oil goods and limited trade.
China’s Belt and Road Initiative plan
The project is also part of China’s mega-plan, the Belt and Road Initiative, which was announced by Xi Jinping in 2013. Under this plan, infrastructure is being prepared on a large scale to connect Asia, Europe and Africa. In May 2025, a meeting of railway officials from Iran, China, Kazakhstan, Uzbekistan, Turkmenistan and Turkey was also held in Tehran, in which there was discussion on building a big rail network from Asia to Europe. This network is also being seen as an alternative to the economic corridor called India–Middle East–Europe Economic Corridor.
