Iranian Oil Exports Plummet Amid Strait of Hormuz Blockade

The Strait of Hormuz naval blockade imposed by the US has led to a significant decline in Iran's oil exports, which fell to their lowest level in six years. According to shipping data and analysts, Iranian crude oil and condensate exports averaged around 209,000 barrels per day (bpd) in May, down sharply from 1.34 million bpd in April and nearly 1.9 million bpd in March.

This marks the lowest level since late 2019 and early 2020, when US President Donald Trump was pursuing a 'maximum pressure' campaign against Iran, Vortexa said. The key drivers behind this decline appear to be the disruption around the Strait of Hormuz, the US naval blockade targeting vessels entering or departing Iranian ports, and the broader unwillingness of owners, operators, insurers, and counterparties to expose vessels and crews to the current security environment.

Data from another firm, Kpler, showed a similar decline, although it pegged May exports slightly higher at 260,000 bpd - still a six-year low. The volume of Iranian oil being stored on ships has been falling as more tankers discharge in China, Kpler data shows. Of roughly 147 million barrels of Iranian crude and condensate floating in storage, about 67 million barrels are stranded inside the Mideast Gulf and Gulf of Oman.