Iranian Oil Exports Disrupted by Renewed US Naval Blockade

A renewed U.S. naval blockade has disrupted Iranian oil exports, causing dozens of tankers to sit idle off the country's coast in the Persian Gulf and Gulf of Oman.

Roughly 50 laden tankers carrying crude oil, refined products, and liquefied petroleum gas (LPG) were waiting as of Tuesday, according to United Against Nuclear Iran (UANI), up from 45 a week earlier and 36 when the blockade was reinstated on July 14.

Charlie Brown, an adviser to UANI, noted that while some smaller vessels continue loading LPG and other petroleum products, crude shipments remain heavily constrained by the blockade. 'The blockade seems effective,' he said.

The export disruptions have reduced the availability of Iranian crude cargoes, with traders reporting fewer offers and higher asking prices. Discounts for Iranian Light crude narrowed to about $4/bbl below ICE Brent, compared with approximately $5/bbl a week earlier.