Kharg Island Oil Exports Ground to Halt Under US Naval Blockade

The US naval blockade has effectively halted oil exports from Iran's Kharg Island terminal, with no tankers loading crude for at least a week. The Financial Times reported that shipping and satellite data show all three loading berths have remained empty since July 31.

Kharg Island is responsible for handling around 90% of Iran's crude exports, making the interruption one of the longest since the war began. According to Richard Bronze of Energy Aspects, 'the blockade is effective' in limiting tanker movement.

The prolonged absence of oil exports may already be forcing Iran to reduce production to prevent storage facilities from becoming overwhelmed, potentially affecting Tehran's revenue stream. Although Iranian crude that left during the ceasefire and is reaching buyers in Asia continues to generate income for Tehran, this flow could dry up soon.