Kharg Island Blockade Halts Iran Oil Exports for Second Time
The oil exports of Iran have stalled once again due to a US naval blockade at Kharg Island, where nearly 90% of the country's crude oil is exported. The blockade has been reimposed for the second time in three months, with tankers unable to load and effectively cutting off Iran's economic lifeline.
The blockade, established around April 13, had previously halted tanker loadings for multiple consecutive days in May. A brief reprieve between mid-June and early July allowed Iran to ship an estimated 40 to 70 million barrels to Asian buyers, mostly at higher realized export prices.
Iranian officials have tried to frame the resumption positively, acknowledging the economic impacts of the blockade but pointing to the benefits of higher export prices. The blockade sits within a broader US-Israel military confrontation with Iran that began in late February 2026.