Iran Oil Exports Collapse Amid US Blockade

The US blockade has severely impacted Iran's oil exports, causing prices to rise in Asia. According to satellite images and trackers, there have been no shipments of crude from Kharg Island, Iran's main export hub, for at least two weeks.

The last recorded shipment was on August 25, with a ship seen at the east jetty, while another large tanker was spotted at the west jetty on August 14. However, tankers often switch off or hide their transponders in the Persian Gulf, complicating tracking efforts.

Preliminary estimates from Bloomberg's tanker-tracking system show that crude and condensate loadings have plummeted to about 247,000 barrels a day in August, a 74% drop from pre-war levels. This is roughly 15% of just-before-war flows.

The oil backup at home is growing, while supplies near buyers are thinning out. Storage at major locations has increased to around 67 million barrels, with capacity about 56% utilized. Meanwhile, around 38 million barrels are now parked to the west of the US blockade due to constrained onward movement.

The shortage is driving prices up, with Iranian cargoes into Asia trading at a $6.50-per-barrel premium over Brent futures, the highest since 2019. This has significant implications for Iran's economy, which is already facing a collapsing currency and surging inflation. The regional disruption has also pushed crude futures past $105 a barrel.

The situation highlights the importance of diversifying energy exposure to protect long-term savings. Briefs Finance CEO Jaspreet Singh will be hosting a free live investor workshop on September 29th, exploring investment opportunities as the dollar falls.