Iran's Main Oil Export Hub Grinds to a Halt Under Naval Blockade

For the first time since the start of the conflict, Iran's primary oil export terminal on Kharg Island has experienced a multi-day shutdown, according to new satellite data. The island, which handles roughly 90% of the country's crude exports, saw no supertankers on May 8, 9, and 11, marking the longest recorded pause in operations. While the port had previously seen isolated days without tankers, this consecutive stretch is unprecedented.

Analysis of European satellite imagery compiled by Bloomberg reveals the extent of the paralysis. The absence of vessels at Kharg Island's loading docks comes as the US naval blockade has prevented tankers from leaving the Persian Gulf, forcing Iran to use them as floating storage. The current halt is now putting severe pressure on remaining onshore storage tanks, which satellite photos show are filling at an accelerated rate.

Rising Storage Crisis

Experts warn that if storage reaches full capacity, Iran may be forced to make deeper cuts to its oil production, having already implemented some reductions. The situation is compounded by reports of a potential oil spill near the island on May 6, estimated at 3,000 barrels by the New York Times. Tehran has denied any leak occurred, and subsequent satellite images have not provided clear evidence of one.

Satellite images from May 11 show the loading piers completely empty, a stark contrast to most previous days. Of the 33 available images since US-Israeli strikes began on February 28, only two prior instances showed a lack of tankers. The blockade, in effect since mid-April, has transformed dozens of tankers into floating storage east of Kharg Island.

Fleet Transformation

The number of very large crude carriers (VLCCs) in the area has surged dramatically. From just three on April 11, the count has risen to at least 18 by May 11, with additional clusters forming near the port of Jask. This buildup reflects the growing bottleneck in Iran's oil export infrastructure.

The prolonged shutdown at Kharg Island represents a significant escalation in the economic pressure on Tehran. As the blockade tightens, Iran faces the dual challenge of maintaining production levels while grappling with a worsening storage crisis that threatens to cripple its most vital revenue stream.