Iran's Oil Stockpile on Brink of Collapse Under US Blockade

The US naval blockade of Iran's oil exports has led to a significant drop in revenue for Tehran, with no Iranian crude crossing the blockade since mid-July. According to shipping-data firm Kpler, offshore reserves have plummeted from about 90 million barrels in mid-July to just 29 million. This dwindling sales are depriving Iran of much-needed foreign currency, exacerbating an already severe economic crisis.

Oil revenues typically finance one-third of the state budget and help fund the military, including the Islamic Revolutionary Guard Corps. However, with the blockade in place, Iranian crude has become scarce enough that it costs refiners more to buy from Iran than from competing suppliers such as Saudi Arabia, Iraq, or the UAE.

The pressure is also spreading to petrochemicals, Iran's second-largest source of foreign-currency earnings after oil. Kpler estimates that loadings in August were about two-thirds lower than at the beginning of 2026.