Iran's Oil Exports Grind to Halt Under US Naval Blockade

Nearly 98% of Iran's oil exports once passed through the Strait of Hormuz, but no loaded tanker has left the waterway since the US blockade began on April 13, according to shipping data from the maritime analytics firm Kepler. The halt has created a severe and escalating storage crisis inside the country, particularly at strategic facilities such as Kharg Island.

Iran produces roughly 4 million barrels of crude per day. Half is consumed domestically, while the remainder is destined for export. That export oil is now piling up in onshore tanks and aboard tankers anchored in the Gulf. Onshore storage capacity totals about 120 million barrels, including at Kharg Island, and an additional 32 million barrels can be held aboard vessels. But with empty tankers unable to return, those reserves are filling rapidly.

Storage Capacity Running Out

Analytical estimates suggest Iran could exhaust its available storage space within 25 to 30 days if the blockade persists. Other projections put the timeline at anywhere from a few weeks to just over a month. The US naval pressure, as described by the New York Times, has effectively paralyzed Iran's covert tanker network and brought its export revenue stream to a near-complete stop.

The blockade is widely seen as an attempt to impose a financial deadline on Tehran, pushing the government toward negotiations. While Iranian officials insist the country can "bear the pain," they also acknowledge that its oil may soon have no export outlet at all.

Unprecedented Pressure on the Oil Sector

Even during previous periods of bombardment, Iran managed to sustain some oil exports. The current situation marks a radical departure. Reports describe the pressure as unprecedented, threatening not just cash flows but the operational infrastructure of Iran's oil industry itself. The economic fallout is spreading across multiple sectors inside the country, and hopes for a swift diplomatic resolution are fading.