Iran Oil Exports Plunge Amid US Pressure and Blockade

Oil prices surged nearly three percent on Thursday as the US tightened pressure on Iran following the expiration of a memorandum of understanding.

The Strait of Hormuz remains effectively blockaded, with traffic well below pre-war levels. In fact, Iranian oil exports through the strait have plummeted by as much as 97 percent from their post-agreement peak.

According to Kpler data, volumes fell to just 46,800 barrels per day in the week of August 10, down from 1.545 million bpd in the week of June 29.

US President Donald Trump announced measures to intensify economic pressure on Iran and curb its oil exports, describing the campaign as 'economic warfare and isolation on an unprecedented scale.'

With tensions in the Middle East remaining high, UBS analyst Giovanni Staunovo warned that there is room for further supply disruptions, which could tighten the oil market.