Iran Admits to Economic Losses in Syria

Syrian families buy school supplies from an old market in Damascus (EPA)
Syrian families buy school supplies from an old market in Damascus (EPA)
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Iran Admits to Economic Losses in Syria

Syrian families buy school supplies from an old market in Damascus (EPA)
Syrian families buy school supplies from an old market in Damascus (EPA)

Iran has lost out in economic competition to Russia and other countries in Syria, according to the deputy chairman of the Syrian-Iranian Chamber of Commerce.

Speaking to ILNA news agency, Ali Asghar Zebardast admitted that the "same thing which happened in Iraq would also happen in Syria. Russia will win the economic benefit in Syria."

He pointed out that Turkey has the upper hand in trade with Iraq.

He explained that Syrian businessmen include those who do not support Bashar al-Assad and trade mainly with Jordan and other Arab countries, and those who back his government and are more likely to do business with Iran.

But Russia is getting the lion's share of rebuilding projects.

The statements of the Iranian official indirectly revealed that the Syrian society rejects the Iranian presence, including the groups most loyal to the regime, as they prefer the Russian presence.

Most Syrians tend to head towards the Arab environment, unofficial economic sources in Damascus told Asharq Al-Awsat, noting that Syrians generally do not accept Iranian goods in some Syrian markets.

Iranian goods are popular in Shiite populated areas and are rare in markets in central Damascus.

The sources pointed out that some merchants resort to concealing the country of origin of the product and the Persian inscription to promote their goods.

Zebardast also indicated that trade with Syria was dismal, and to boost Iran's image as a trading partner, "an exhibition has been organized to take place in Damascus in November."

The official described economic relations with Syria as "slow," blaming the Syrian side for this, saying that "Syria's economic benefits go to Russia as well as other countries."

The annual trade volume between Iran and Syria is estimated between $170 and $180 million, and Tehran aspires to double that in the coming years.

The Trade Promotion Organization of Iran has devised a plan to export $400 million of goods to Syria, in exchange for $100 million in imports in 2023, provided that the remainder of the target volume includes the expansion of the export of technical and engineering services to Syria.

The amount of smuggled goods entering Syria from Turkey is very high, considering that the absence of a land border between Syria and Iran negatively affects trade exchange and the transit of goods.

Zebardast also discussed transportation difficulties between Syria and Iran and added that the shortest direct route is through Iraq. However, the Iraqi government "has not yet prepared the land route to Syria," he said.

He indicated there are two options for transportation to Syria, either through Turkey, which closed the borders due to the war, or through the Gulf, which is a long distance.

The US sanctions and the Caesar Act also hinder trade between Iran and Syria because companies cannot easily transfer money to Iran.

In 2019, Iran signed a long-term economic cooperation agreement with Syria, which included the banking and financial sector, construction and reconstruction, and a memorandum of understanding that included the construction of 30,000 housing units in most Syrian cities.

The two sides also established the Syrian-Iranian Joint Committee and the Syrian-Iranian Joint Bank. However, the emergence of the coronavirus halted the agreements, and commercial activity was severely disrupted.

Iranian exports to Syria decreased by 43 percent between March 2020 and March 2021.



Red Sea Truce Signals Possible Deal Between Washington, Tehran

Two Iranians walk past an anti-US mural on the wall of the former American embassy in Tehran (EPA). 
Two Iranians walk past an anti-US mural on the wall of the former American embassy in Tehran (EPA). 
TT
20

Red Sea Truce Signals Possible Deal Between Washington, Tehran

Two Iranians walk past an anti-US mural on the wall of the former American embassy in Tehran (EPA). 
Two Iranians walk past an anti-US mural on the wall of the former American embassy in Tehran (EPA). 

Before US President Donald Trump announced that the Houthis had pledged to halt attacks on ships in the Red Sea, religious and political institutions in Tehran were already predicting a shutdown of navigation through the Bab al-Mandab Strait starting May 17.

This prediction coincided with celebrations by senior Iranian officials over the Houthis’ strike on Israel’s Ben Gurion Airport, at a time when negotiations with the US were stalled after three slow rounds.

The timing raises questions: does the ceasefire signal a loss of a key bargaining chip for Iran, or is it a calculated concession to improve its position ahead of resumed talks next week—especially amid reports that Tehran has requested direct negotiations as part of a broader deal?

On Tuesday, Trump announced the Houthis had agreed to cease their attacks on Red Sea shipping, prompting the US to immediately suspend its airstrikes. Oman’s Foreign Minister Badr al-Busaidi confirmed his country brokered the agreement, ensuring safe commercial navigation in the Red Sea.

A day before the truce, Ali Shamkhani, a senior member of Iran’s Supreme National Security Council, hailed the Houthi attack on Ben Gurion as a “strategic blow” and evidence that the resistance front—from Lebanon and Gaza to Iraq and Yemen—was now in control.

Iranian newspaper Kayhan argued that the attack would strengthen Iran’s position in its negotiations with the US, undermine American threats, and thwart Israeli Prime Minister Netanyahu’s efforts to derail diplomacy. The paper framed the strike as proof of Iran and its allies’ regional influence.

Though Iran insists regional militias act independently, Houthi spokesman Mohammed Abdul Salam stated that the ceasefire with the US does not include operations against Israel. Another Houthi official confirmed Oman’s role in brokering the truce to halt attacks on American vessels.

In Washington, Republican Senator Lindsey Graham welcomed the ceasefire, warning that continued Houthi aggression toward Israel would ultimately hurt Iran. “Without Iran, the Houthis do not possess the capability to attack the US, international shipping, or Israel,” he said.

Iran officially welcomed the cessation of US strikes in Yemen. Its Foreign Ministry said it viewed the development positively. However, Israeli media suggested disappointment in Tehran, with Yedioth Ahronoth reporting that Iranian Foreign Minister Abbas Araghchi had proposed direct nuclear talks with US envoy Steve Witkoff—a claim strongly denied by Iran.

Supreme Leader Ali Khamenei has previously described negotiations with the US “dishonorable” and “unreasonable,” though he recently allowed them, calling the situation “temporary.”

The Wall Street Journal reported that Israeli officials were surprised by Trump’s announcement of a ceasefire and agreement with the Houthis.

Momentum appears to be building toward a broader US-Iran deal. US Vice President J.D. Vance said: “We think there is a deal here that would integrate Iran into the global economy.”

He emphasized that while Iran may pursue civilian nuclear energy, it must be barred from developing nuclear weapons. Vance said talks with Iran are progressing well and will likely result in a formal agreement balancing economic integration with nuclear restrictions.

The New York Times also cited Iranian officials confirming that Tehran used its influence over the Houthis to secure the truce with Washington.