Iran Reroutes Oil Flow Around Strait of Hormuz Blockade

Iran has resumed loading crude at its Kharg Island terminal after a 25-day shutdown. The western terminal was reactivated on August 12, according to maritime intelligence company Windward. A very large crude carrier (VLCC) was seen berthed and loading for the first time since July 18.

The eastern oil terminal and the liquefied petroleum gas (LPG) facility remained empty, while the offshore waiting area still held 16 to 17 tankers. Iran has been rerouting its oil flow around the Strait of Hormuz blockade, which has severely disrupted its main oil-export artery.

Windward's data shows that Russia-to-Iran wet-cargo movements increased 2.9 times to 23 shipments in the 164 days following the February 28 blockade, from eight shipments during the comparable earlier period. Volumes rose from 174,100 barrels to about 437,000 barrels.

This indicates a broader shift in Tehran's maritime strategy: rather than waiting for restrictions to ease, Iran is redirecting cargo through alternative anchorage and inland-connected routes. The data suggests that Iran may not need to export as much crude, as its oil production appears to be roughly in line with refinery runs or domestic consumption.