Iran exports to Iraq surged in the first seven months of 2025, signaling a major boost in bilateral trade. According to officials, the Khosravi–al-Munthiriya border crossing handled $567 million worth of goods during this period. This represents a 45% rise in value and a 51% increase in volume compared to last year.
Reza Nikroush, head of Kermanshah Customs, reported that 1.25 million tons of goods moved through the crossing. Of the total, $355 million passed through Khosravi, making it the top export hub in Kermanshah Province and the second largest nationwide for trade with Iraq. The remaining $212 million cleared other customs offices before reaching Iraq.
Key exports included fruits, vegetables, plastics, steel, and dairy products. Analysts note that the diversity of goods highlights the resilience and adaptability of Iran’s non-oil trade sector. The growth follows a recent Tehran–Baghdad agreement aimed at improving trade ties and simplifying border operations.
Kermanshah continues to serve as a critical hub for Iran exports to Iraq. Officials plan to expand Khosravi’s capacity to handle higher trade volumes. The goal is to eventually raise annual trade through this crossing to $5 billion.
Trade experts say the border’s expansion could enhance regional economic integration. It may also increase employment and support small and medium-sized enterprises involved in export supply chains. Moreover, smoother border procedures are expected to reduce logistical bottlenecks and lower costs for exporters.
Government officials stress the importance of bilateral cooperation in achieving sustainable growth. They highlight that stronger border trade strengthens diplomatic and economic relations between the two nations. Officials also suggest that further infrastructure improvements and streamlined customs processes will encourage private sector investment.
Looking ahead, Iran exports to Iraq are expected to maintain an upward trend. Both countries aim to reinforce cross-border trade while addressing security, regulatory, and logistical challenges. Observers say sustained growth could make Iraq one of Iran’s largest export markets.
In summary, Iran exports to Iraq have reached record levels. Continued investment in border infrastructure, trade facilitation, and government coordination will likely drive further growth.