Iranian officials say deadly port blast led to $4b economic losses

Iranian officials have stated that the explosion that killed 70 people and injured more than 1,200 others at the Port of Shahid Rajaee late last week resulted in economic losses amounting to the equivalent of US$4 billion, or around two per cent of Iran's GDP.

The port in Bandar Abbas is one of Iran's main maritime hubs, handling approximately 60 per cent of seaborne trade and being responsible for 53 per cent of cargo loading and unloading activities.

An academic study had warned that any disruption at such a critical facility would have significant long-term consequences on Iran's economy, as the country relies on its ports for facilitating 70 per cent of its imports and 30 per cent of non-oil exports.

The same study showed that shutting down Shahid Rajaee Port for 90 days would impact domestic supply chains in industries such as chemicals and automotive production, though projected losses could not yet be estimated.

The explosion at the port last Saturday was believed to have originated from an on-site liquid storage container.

Officials said that all known fires have been contained and operations at many areas of the port have resumed.