The city occupies a strategic position on the narrow Strait of Hormuz (just across from Musandam Governorate, Oman), and it is the location of the main base of the Iranian Navy.

In Henry Yule's dictionary of Anglo-Indian jargon two etymologies are given; the first derived from Turkish gümrük, "customhouse" (from Late Greek kommerkion, from Latin commercium, "commerce").

In 1565, a European navigator called it Bamdel Gombruc (that is, Bandar Gümrük, or "Customhouse Port"), citing this as the Persian and Turkish name.

Bandar Abbas was conquered by the Portuguese in 1514, and was an important location to protect their commerce in the Persian Gulf and India.

By 1622, the Portuguese and English names had been officially combined to form Combrù or Combu, although the inhabitants still called it Bandar-e Abbas.

In the current division of Bandar Abbas in Hormozgan province and one of the most important strategic and commercial center is in the vicinity of the Persian Gulf and Oman Sea.

In 1823, the Persians attempted to oust the Omanis, but the sultan managed to keep his hold on Bandar through bribery and tribute of the governor of Shiraz.

It was clarified that the leased territory belonged to the province of Fars and that the Persian flag would fly over Bandar Abbas.

Two months after its renewal, the lease was cancelled by the Persian government, citing a clause which permitted its termination if the sultan of Oman were overthrown.

[11] An earthquake in July 1902 damaged parts of the city, including the governor's house and the customs office, and nearby Qeshm Island.

[12] Mohammad Reza Shah Pahlavi paid particular attention to Bandar Abbas as a strategic port and during his time the government invested huge amounts of capital in the infrastructure.

Bandar Abbas serves as a major shipping point, mostly for imports, and has a long history of trade with India, particularly the port of Surat.

Before initial plans to develop it as a major harbor, Bandar Abbas was a small fishing port with approximately 17,000 residents in 1955.

Iranians from the regions of Azarbayejan, Kurdistan, Luristan, Baluchistan, Kerman, Yazd, Isfahan, Fars, Gilan and Mazanadaran all contribute to economy and trade of the city.

[19] Bandar Abbas is situated on flat ground with an average altitude of 9 metres (30 ft) above sea level.

[20][21] This immense humidity causes summer diurnal ranges to be lower than in most desert climates, and is a result of air flow from the warm waters of the Persian Gulf.