Iran is not an attractive market for foreign trading partners. The American sanctions that have been upright for years are noticeably limited the possibilities of the country. Now there is also a threat of a blockade of the strategically important way of Hormuz, which means that approximately 20 percent of the global oil export current.
Last year the trade volume between Iran and Austria was 128.4 million euros. This is an extremely low amount compared to the entire Austrian foreign trade. Moreover, there was a significant decrease of 26.2 percent compared to 2023. Domestic exports to Iran are mainly pharmaceutical products, machines and systems. For input, the minus was even greater at 35.5 percent.
The reason is the uncertainties because of the intensification of the Iran Israel conflict last fall. Many Austrian exporters struggle with the existing restrictions in payment transactions. In order not to violate the sanctions, “a lot of effort and care” are needed, according to the April’s Chamber of Commerce. Halfway through the 2010 there was still high expectations of cases with the Iranian Republic in the field of waste management and water management. Global political reasons have prevented this.
Here is the street of Hormuz:
Concern for oil prices
Iran’s threats are currently causing concern to block the strategically important street of Hormuz. About 20 percent of global oil export flows over the meters. A closure would lead to considerably higher prices. Economist Mahdi Ghodsi of the Vienna Institute for international economic comparisons expects an increase of around 20 to 50 percent. That would be the case with a blockade in the short term that only lasts a few days.
The question is whether this is in the power of Iranian leadership. Because the country would then have the army of the United States and the navy of many other countries. Moreover, Iran could possibly apply in addition to the West against his partner China, who relates to large quantities of Iranian oil.
Inflation in Austria could increase
For Austria, a long -term closure of the Hormuz road at the end of the year would mean inflation of up to five percent. This estimates Wifo economist Josef Baumgartner based on a simulation. In the first quarter of 2026 the situation should calm down again and down the price ball.
The fastest way to feel the blockade at fuel prices. “As a rule, it only takes a few days before an oil price increase is reflected in the gas stations,” said Baumgartner. Higher transport costs would be incurred for almost all goods. As a result, these errors would also be reflected in the heating costs, in industry and later in wage negotiations.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
