The story: Moscow and Tehran—both under harsh western sanctions—have moved to strengthen economic ties with a new agreement to build a railway that is key to the International North-South Transit Corridor (INSTC). Meanwhile, in a bid to enhance trade and transit, Russia's second-largest bank has established a representative office in Iran.

The coverage: Iran and Russia on May 17 inked an agreement on the long-stalled construction of a railway connecting the northern Iranian cities of Rasht and Astara.

• Spanning 162 km (100.6 miles), the railway is a crucial element of the INSTC. The Corridor integrates road, rail, and sea transportation, facilitating the movement of goods between Russia and India via Iran.

Iranian President Ebrahim Raisi and—via video link—Russian President Vladimir Putin addressed the ceremony in Tehran where the two...