Iran's Oil Exports Halted by US Naval Blockade for Seven Weeks
Iran has gone seven weeks without shipping meaningful crude exports through the Strait of Hormuz, marking the first time on record.
This is due to a U.S. naval blockade that has succeeded where years of sanctions failed in cutting off one of Tehran's main sources of foreign-currency earnings.
The current blockade has stopped fresh crude cargoes reaching China, Tehran's only major remaining oil customer, increasing pressure on government finances and foreign-currency reserves.
According to estimates by Vortexa and Kpler, Iran loaded about 220,000 to 255,000 barrels per day of crude in August, down from roughly 740,000 bpd in July and about 2 million bpd in March.
Kpler analyst Homayoun Falakshahi warned that the collapse in exports is draining one of Iran's main sources of foreign-currency income and could force Tehran to finance spending by printing money, risking even higher inflation.