The cause of blast at Shahid Rajaee is not known but experts believe it may be chemical explosion

A blast at the Shahid Rajaee container facility in Iran has resulted in 18 people being killed and 700 people being injured, with officials suggesting that the fire may be caused by the explosion of chemical containers.

Shahid Rajaee is one of two ports that make up Bandar Abbas, Iran’s largest port, handling 80 million tons of goods annually, according to various media reports.

Bandar Abbas handled $9 billion of goods, which is 52% of all Iranian trade last year, according to our ALPS Marine analysis. Further ALPS analysis revealed that plastic materials ($979 million) and iron ores ($920 million) were some of the largest exports from the port last year. In addition, the port is reliant on Chinese trade, with 80% of all annual country trade with the port, originating from China.

Despite investigations being conducted by Iranian officials, one official believes that the cause of the fire was the explosion of chemicals.

“The cause of the explosions was the chemicals inside the containers, “ said Hossan Zafari, a crisis management spokesman speaking to the Iran’s ILNA news agency.

Yet, the explosive chemical according to security experts, may be ammonium perchlorate, a chemical used to make solid propellant for rockets.

Ambrey, a private security firm, said that in March, the port received a shipment of missile fuel chemicals from China.
CNN reports that imports of ammonium perchlorate by Iran is part of a replenishment drive of the country’s depleted missile stocks, following the missile strikes on Israel during the ongoing Gaza war.

“The fire was reportedly the result of improper handling of a shipment of solid fuel intended for use in Iranian ballistic missiles”, Ambrey said. This is a view that has been denied by senior Iranian military officials.

Port activities had been suspended and all export and transit shipments to the port have been halted by Iranian customs officials until further notice.

National Iranian Oil Refining and Distribution Company said that the oil refineries, tankers and pipelines in the area have contained to operate and were unaffected by the blast.

The explosion comes as Iran and US officials met in Oman for a third round of talks to achieve a deal on Iran’s nuclear programme.

This is not the first time that the container facility has suffered from a large incident. In 2020, the facility was hit by a complex cyberattack that jammed port logistics. The Washington Port reported that Israel was behind the attack in retaliation for an Iranian cyberattack.