Iran Port Explosion Kills 70, Causes $4B Economic Loss

A powerful explosion at Iran’s Shahid Rajaee port in Bandar Abbas on April 26, 2025, killed at least 70 people and injured more than 1,200, causing extensive damage to infrastructure and stored goods. The blast, which experts suggest involved nitrate or perchlorate compounds commonly used in fertilizers or potentially rocket fuel, originated among shipping containers—possibly storing hazardous materials. Iranian officials estimate the resulting economic losses at about $4 billion, nearly 2% of the country’s GDP, with the port being responsible for over half of Iran’s cargo handling and vital to its commercial supply chains. The incident has severely disrupted trade, with analysts warning that a prolonged shutdown could impact key sectors like chemicals, automotive, and food production, and poses a major shock to Iran’s international trade, though it is unlikely to cripple the overall economy. Authorities attributed the explosion to safety violations and negligence, but the precise cause remains unclear. The disaster has also raised concerns about the effectiveness of customs procedures and currency restrictions, which left many containers stranded at the port.