Iranian Oil Export Blockade Tightens, Tanker Count Hits 45

The US blockade of Iranian oil exports continues to tighten, according to data from United Against Nuclear Iran (UANI), which tracks Iranian shipping. A week after the blockade was renewed, the tanker count hit 45, with no loaded tankers confirmed leaving Iranian ports or the Gulf of Oman.

Charlie Brown, an adviser to UANI, notes that the blockade is effective in both directions: it stops loaded ships from leaving Iranian ports and prevents empty tankers from returning to load new cargoes. Chinese buyers are not eager to take more Iranian crude, with data showing independent Shandong refiners using only 48% of their capacity on July 31.

The logjam is causing prices to adjust, with the discount shrinking as the blockade cuts supply. However, weak Chinese demand is also pulling prices down. The tanker count serves as an early warning sign for the oil market, indicating which way supply is leaning.