KABUL, Afghanistan — Afghanistan’s already fragile economy is facing a new crisis as conflict in the Strait of Hormuz has severed crucial supply lines, leaving businesses struggling and humanitarian aid organizations unable to deliver life-saving assistance.
The landlocked nation had already lost access to Pakistan’s key Karachi shipping hub when border disputes closed crossings between the two countries in late 2023. Afghan importers then shifted their operations to Iran’s Bandar Abbas port as an alternative route.
However, that backup plan quickly unraveled when warfare erupted in the strategic waterway, trapping hundreds of vessels and thousands of crew members. Simultaneously, thousands of containers destined for Afghanistan remained stranded in Pakistan.
The dual blockade has created a catastrophic situation for Afghan commerce and international relief efforts.
The World Food Program, which provides essential nutrition assistance including supplements for undernourished mothers and children plus fortified energy biscuits for students, has watched transportation expenses soar while supply deliveries ground to a halt.
According to the organization, most nutrition materials previously came through Pakistan. When that border shut down in October, shipments were redirected through Dubai and Iran by sea. However, that pathway became unusable as Tehran gained control over the strait while U.S. forces established blockades around Iranian ports.
Critical nutritional supplies steadily decreased before completely running out by mid-April.
“At a time when malnutrition is already at near-record levels, weakened and desperate mothers and children are being turned away from health clinics, as we have no food to give them,” said John Aylieff, WFP’s country director in Afghanistan.
The organization was already struggling with severe funding shortfalls, having received just 8% of its annual budget requirements this year.
“On top of a funding crisis, conflict in the Middle East and the closure of the border with Pakistan are choking WFP’s operations — blocking supply routes, driving up costs and straining markets at the worst possible time,” Aylieff said in emailed comments.
Relief supplies now must travel overland through Central Asian countries, completely avoiding ocean routes. This has caused WFP’s shipping expenses to triple, while supplement costs for malnourished mothers and children have increased by 35%, according to Aylieff.
When the Iran conflict began in late February, one of the organization’s shipments of fortified energy biscuits became stranded in the United Arab Emirates.
Rather than taking the direct route from Dubai through Iran into Afghanistan, the cargo has been forced onto an extremely lengthy detour through Saudi Arabia, Jordan, Syria, Turkey, Georgia, Azerbaijan and across the Caspian Sea into Turkmenistan, the organization reported.
That shipment has been in transit for three months.
Local businesses are equally devastated. Lutfullah Akbari, who operates a small Kabul company importing construction machinery, faces an impossible situation with his Chinese supplies trapped on vessels unable to pass through the Strait of Hormuz while logistics costs continue climbing.
“I have nothing else to use to continue my business here,” he said.
Akbari is now contemplating abandoning his cargo entirely if the waterway doesn’t reopen soon.
“The Iran-U.S. war has had a huge impact on my business,” he said. While other merchants have redirected shipments through Central Asia, the route is both longer and more costly.
“The logistics company now wants more than the value of our goods and the capital we had invested in them. We can’t afford it,” Akbari said.
“Even if I bring them here, I’ll have to sell them all at a loss. I can’t afford to lose twice.”
Gul Meer Amini, logistics director at freight company Etifaq Bamyan International Transport and Trade Forwarding, reported that the Iran conflict has dramatically inflated expenses. His company handles various cargo including humanitarian supplies.
Container rental fees that previously ranged from $3,000 to $3,600 per shipment have now jumped above $7,000. For certain goods, costs have exceeded $11,000, he noted.
“The impact is reaching all traders,” Amini said.
Mohammad Murtaza Ishaqzai, a Kabul electronics retailer, said shipping his Chinese merchandise through Iran previously cost between $1,100 and $1,500 before the conflict. Those expenses have now skyrocketed to more than $15,000.
“We can’t export and we can’t import,” he said, urging the Taliban government to settle its dispute with Pakistan to allow border commerce to restart.
If current conditions persist, he warned, “our business will be finished.”
Afghanistan’s Commerce and Trade Ministry spokesperson Abdul Salam Jawad noted that nationwide price increases have remained relatively modest at approximately 3%, due to ongoing commerce with Iran and sourcing many imports from Central Asia, Russia and China.
“The problem we faced was the restrictions on our imported goods and containers coming from other countries” via Iran, he said. “We are waiting for a solution to be found in the Strait of Hormuz so that we can export normally.”
Khan Jan Alokozai, senior adviser to Afghanistan’s Chamber of Commerce and Investment, said over 60% of Afghanistan’s trade now flows through Central Asia, helping to reduce the Iran conflict’s overall impact.
Food and fuel products are arriving through Central Asia and Russia, while significant trade is now being conducted via Turkey, with goods then transported by rail through Iran or Azerbaijan, Alokozai explained.
