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Truck drivers across Iran have launched a nationwide strike over rising insurance and maintenance costs and worsening economic conditions. The truck drivers are protesting the government's plan to cut the amount of subsidized diesel allocated to truckers. Strikers also cited unaffordable insurance premiums, stagnant freight rates, and deteriorating road infrastructure. The government-subsidized insurance premium for truck drivers increased by approximately 45 percent earlier this year. The strike began in Bandar Abbas, Hormozgan Province, which is Iran’s primary shipping hub, on May 18 and has since spread to other major Iranian cities. Economic-related protests and strikes have the potential to escalate into anti-regime protests similar to how demonstrations against increasing gas prices morphed into anti-regime protests in 2017 and 2018.

The ongoing strikes will likely worsen Iranian freight transport issues, especially after a recent explosion at a major port in Bandar Abbas. The Shahid Rajaee port in Bandar Abbas, which handles 85 percent of Iran’s container traffic and a significant share of oil exports, suffered a major explosion on April 26 that has disrupted container traffic and cost Iran an estimated 25 million US dollars per day. The ongoing strike has reportedly strained domestic freight transport, particularly agricultural distribution during the harvest season. Iranian officials rejected claims that fruit and vegetable prices increased by 50 percent and stated that only a few staples saw "temporary” increases due to recent transport issues. An Iranian judiciary official reported on May 26 that Fars Province security forces arrested and prosecuted individuals who blocked the movement of freight trucks on roads. Iranian Law Enforcement Command (LEC) forces separately clashed with strikers in Sanandaj, Kurdistan Province, on May 25 with pepper spray.

Key Takeaways:

• Truck drivers across Iran have launched a nationwide strike over rising insurance and maintenance costs and worsening economic conditions. The ongoing strikes will likely worsen Iranian freight transport issues, especially after a recent explosion at a major port in Bandar Abbas.

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