Seven Weeks of Silence: US Blockade Crimps Iran's Oil Exports to China

The US naval blockade of Iran has successfully halted the country's oil exports for over seven weeks. Since July 14, when Washington reinstated its blockade as part of a six-month conflict between the two countries, no Iranian crude cargoes have cleared the Strait of Hormuz to reach China, Tehran's main foreign-currency source.

According to shipping trackers Kpler and Vortexa, Iran loaded an estimated 220,000 to 255,000 barrels per day of crude and condensate in August, down sharply from roughly 740,000 bpd in July and about 2 million bpd in March. This collapse in exports is draining one of Iran's primary sources of foreign-currency income.

Kpler analyst Homayoun Falakshahi warned that the blockade could force Tehran to finance spending by printing money, risking further inflation. The International Monetary Fund estimates Iran's inflation rate at nearly 70% this year, the third-highest in the world after Venezuela and Sudan.