Explosion at Iranian port disrupts foreign trade and leaves hundreds injured

Massive blast at Shahid Rajaee port in Bandar Abbas halts imports and exports as investigations continue.

Smoke rises after a massive explosion at Shahid Rajaee Port as officials carry out operations on April 26, 2025. Photo by Mohammad Rasoul Moradi/Anadolu

By Anna Fadiah and Hayu Andini

A devastating explosion at a strategic Iranian port on Saturday has left eight people dead and more than 750 workers injured, severely disrupting foreign trade operations in the region. The explosion at Iranian port Shahid Rajaee in Bandar Abbas, located on the vital Strait of Hormuz, has also led Iranian authorities to suspend all import and export activities through the site.

The cause of the explosion remains under investigation, although early reports from local officials, quoted by Iranian state media, point to a possible "incident" involving highly flammable fuel containers. Despite the intensity of the blast — with state television broadcasting images of a massive mushroom cloud towering over the port — Iranian officials stated that the city’s oil infrastructure remained untouched.

The fire continued to rage for more than 12 hours after the initial explosion, fueled by strong winds that hampered efforts to bring it under control. Emergency response teams faced significant challenges as flames spread rapidly across fuel storage areas, threatening nearby cargo and facilities.

Shahid Rajaee port is one of Iran's most critical gateways for international trade, handling a significant portion of the nation's imports and exports. The explosion at Iranian port operations has delivered a sharp blow to an economy already strained by sanctions and diplomatic isolation. Iran’s customs authority quickly moved to suspend all trading activities through the port, further compounding economic pressures.

Despite the scale of the disaster, officials reassured the public that Bandar Abbas’s major refinery operations were unaffected. The refinery, managed by the National Iranian Oil Refining and Distribution Company, reportedly continues to function normally. Given Iran’s heavy reliance on oil exports for foreign currency earnings, safeguarding these facilities remains a top priority for the government.

Iran’s economy, weakened by years of international sanctions, depends heavily on oil revenues to import essential goods such as food, medicine, and industrial components. Any damage to the refinery would have deepened the country’s already precarious financial situation.

The explosion at Iranian port comes at a critical moment in Iran’s geopolitical calendar, coinciding with the opening of a third round of indirect talks between Tehran and Washington in Muscat. These negotiations aim to find a pathway toward ending the longstanding nuclear standoff, which has cast a shadow over Middle Eastern stability for over a decade.

Iranian social media erupted with speculation in the aftermath of the blast. Many users suggested the explosion might not have been accidental, raising fears of sabotage designed to influence or disrupt the ongoing nuclear talks. Some pointed fingers at domestic hardliners opposed to any deal with the United States, while others accused foreign adversaries, notably Israel, of seeking to derail negotiations through covert action.

While no evidence has yet been presented to substantiate claims of sabotage, the timing of the explosion has undeniably added tension to the diplomatic efforts unfolding in Oman’s capital.

Iran’s Foreign Minister, Abbas Araghchi, sought to strike a balanced tone when addressing the media. In an interview with state television on Saturday, he emphasized that the talks with U.S. special envoy Steve Witkoff were progressing with greater seriousness than in previous weeks.

Araghchi noted that discussions had moved beyond general principles to include more technical details, suggesting some momentum toward a potential agreement. Nevertheless, he acknowledged that significant differences remained between the two sides. These sticking points are expected to be revisited in a fourth round of negotiations, tentatively scheduled for the following Saturday.

While Araghchi refrained from directly linking the explosion at Iranian port to sabotage efforts, he did not dismiss the potential for outside interference entirely, warning against premature conclusions until the investigation is complete.

On the ground in Bandar Abbas, emergency teams continued to search through the wreckage late into the night. Hospitals across the city reported being overwhelmed with injured workers, many suffering from burns, smoke inhalation, and injuries caused by falling debris.

Authorities have pledged to support affected families, although compensation details remain unclear. The government announced that a full assessment of damages to the port’s infrastructure would be conducted once the site is deemed safe.

The impact of the explosion at Iranian port will be felt keenly by the local workforce. Many workers at Shahid Rajaee port are contract employees without significant job protections, raising concerns that they may face long-term unemployment during the port’s recovery phase.

Bandar Abbas serves as Iran’s most important southern trade hub, linking the country to major shipping routes through the Strait of Hormuz. The Shahid Rajaee port, in particular, plays a vital role in the import of consumer goods and export of non-oil commodities, making its disruption a serious blow to the Iranian economy.

Iranian analysts have warned that a prolonged shutdown at Shahid Rajaee could further isolate Iran’s economy, particularly if traders seek alternative ports in neighboring countries. Rebuilding trust with international shipping companies and ensuring the port’s security will likely become a central focus for Iranian authorities in the coming weeks.

Beyond Iran’s borders, the explosion at Iranian port has raised alarms among neighboring Gulf states and major trading partners. The Strait of Hormuz is one of the world’s most critical maritime chokepoints, with about a fifth of global oil consumption passing through its narrow waters each year.

Any perception of instability along this vital shipping lane could drive up global oil prices and spark renewed tensions between Iran and its Gulf neighbors. Several Gulf countries have already increased their security alerts for port facilities, citing concerns about potential ripple effects.

As investigations continue into the cause of the explosion, Iranian authorities face the dual challenge of managing immediate recovery efforts while navigating the delicate path of nuclear negotiations with the United States.

Whether the explosion at Iranian port proves to be a tragic accident or something more sinister, it has undoubtedly complicated an already precarious political and economic landscape for Iran. The coming days will likely be critical in shaping both the country’s domestic stability and its international standing.