Iraq's $24 Billion New Trade Route Set to Reshape Gulf Region Landscape

Iraq's planned $240 billion new road construction project is poised to bring about changes in the regional economic landscape by establishing a new trade route amidst the unstable situation in the Strait of Hormuz.

Iraq's 'Development Road' project is an effort to develop an alternative trade route extending from the Grand Fao Port through Turkey to Europe. It is emerging as a countermeasure to supply chain shifts prompted by the escalating geopolitical uncertainty in the Strait of Hormuz.

Iraqi Prime Minister Mohammed Shia Al-Sudani is advancing the project with the goal of completing the first phase by 2028, starting with the opening of the first 63-kilometer section in 2025.

Analysts assess that if container shipments through Iraq's Basra bypass Iranian-controlled waters, Tehran's economic leverage in the region could diminish.