Russia, Iran Advance 150 Million Cubic Meters-a-Day Gas Link via Azerbaijan as U.S. Blockade Bites
Updated
Updated · CBS New York · Aug 28
Russia, Iran Advance 150 Million Cubic Meters-a-Day Gas Link via Azerbaijan as U.S. Blockade Bites
3 articles · Updated · CBS New York · Aug 28
Summary
Russia and Iran said talks made “very good progress” on an overland pipeline through Azerbaijan, with Gazprom and Iran’s Petroleum Ministry agreeing an initial transfer capacity of 150 million cubic meters a day.
Kazem Jalali said the sides have reached understanding on nearly all issues and are no longer at the project’s initial stage, with only “one or two” points still unresolved.
The planned flow is equivalent to just under 1 million barrels a day, offering Iran a land-based energy route as the U.S. blockade has choked maritime access through the Strait of Hormuz.
That pressure campaign still faces limits: about 6,000 seafarers on 400 ships remain trapped in the strait, while commercial traffic is still far below the roughly 120 daily transits seen before the war.
Can a new Russian gas pipeline truly save Tehran's economy while thousands of seafarers remain trapped in the heavily militarized Gulf?
With the temporary U.S. sanctions waiver recently expired, will the Strait of Hormuz plunge back into total chaos or find a diplomatic miracle?
If Beijing ignores Washington's threats over Iranian oil, could this maritime standoff trigger a much larger global financial showdown?
Russia-Iran-Azerbaijan Gas Deal (2025–2026): Can a $20 Billion Pipeline Overcome Geopolitical and Environmental Hurdles?
Overview
The Russia-Iran-Azerbaijan gas deal is shaped by Russia’s urgent need to find new gas markets after losing European buyers and Iran’s worsening energy shortages caused by decades of sanctions and underinvestment. Although the three countries announced ambitious plans, regional instability and technical hurdles have delayed progress, with only small gas swap volumes possible for now. Iran’s lack of LNG terminals means imported Russian gas will be used domestically, while Russia’s financial troubles and EU bans on Russian gas make large-scale investment unlikely. Meanwhile, Azerbaijan is strengthening ties with the West, supporting new corridors that bypass Russia and Iran, and further complicating the region’s energy and geopolitical landscape.