War in the Middle East Blocks Armenia’s Key Trade Route Through Iran

Armenia is facing growing economic problems due to the conflict in the Middle East and mounting delays in Georgia have disrupted key trade routes used by Armenian cargo trucks. These disruptions are causing serious setbacks for businesses that rely on imports and exports, according to Economy Minister Gevorg Papoyan.

Speaking to members of parliament on Monday, Papoyan confirmed that cargo shipments through Iran—one of Armenia’s two main trade routes—have been blocked since fighting broke out between Israel and Iran on June 13. 

“Some cargoes are stuck in the Iranian port of Bandar Abbas, while others are stuck on the roads,” Papoyan said during a committee meeting in the National Assembly. “We are having serious problems with both exports and imports.”

The Iranian route is essential for Armenia’s trade. As a landlocked country, Armenia depends on its neighbors for access to international markets. Trade through Iran makes up a large portion of the country's commercial activity, with up to one-third of goods traveling through Iranian ports like Bandar Abbas. Now, with airstrikes and military operations ongoing in the region, Armenian companies are struggling to move goods in and out.

Although the Armenian government has expressed hope that peace will return soon, there are no clear signs that the conflict will end in the coming days. Armenia’s Ministry of Foreign Affairs has officially condemned the Israeli strikes and Foreign Minister Ararat Mirzoyan spoke with his Iranian counterpart to discuss the situation.

Papoyan emphasized that this crisis is beyond Armenia’s control. “Stability in the region is very important for all countries, including Armenia,” he said. “However, we hope that the conflict will be resolved soon, and we will be able to transport goods through Armenia's friendly [neighbor] Iran, as we have before,”

Unfortunately, this is not the only transport issue facing Armenia. The country is also experiencing major delays with cargo shipments going through Georgia—the only other major route for trade. Since late April, Georgian authorities have been physically checking Armenian shipments of brandy and other goods headed for Russia. These inspections have lasted several weeks, leaving dozens of Armenian trucks stuck at Georgian customs terminals.

In response, Armenia temporarily banned other commercial trucks from crossing into Georgia starting June 10 to ease congestion. However, this ban remains in place, and there is still no timeline for when it might be lifted. Papoyan said the government has made efforts to resolve the issue, but progress has been slow. “For some time, Armenian trucks were not even passing through Georgia,” he said. “Now the pace is very slow—only a few vehicles per day are allowed to continue.”

Finance Minister Vahe Hovhannisyan also raised alarms about the economic consequences of these disruptions. He warned that the longer trade routes remain blocked, the more harm it will cause to Armenian businesses, prices, and economic stability. As of now, the Armenian government has not announced any specific plan to respond to the crisis.

Despite the challenges, Armenian officials continue to engage in diplomatic efforts with both Iran and Georgia to restore smooth transportation channels. But until military tensions in the region ease and customs delays are lifted, the country’s vital trade lifelines remain under threat.

—

Support independent reporting from the region by subscribing to The Armenian Report. Our team is funded solely by readers like you.