US Blockade Brings Iran Oil Exports to a Near-Halt

Iran's oil exports have come to a near-halt due to a US naval blockade reimposed in mid-July. According to shipping and satellite data providers, no tankers have loaded at Kharg Island, Iran's main oil export terminal, for at least a week.

The US naval blockade has been in place since the collapse of an interim deal mediated by Pakistan to reopen the Strait of Hormuz. Kharg Island is critical to Iran's oil industry, and nearly 90% of the country's crude exports are shipped from there due to most of its coastline lacking the depth needed for large oil tankers.

Richard Bronze, head of geopolitics at Energy Aspects, commented that the blockade is effective in limiting tanker movement. However, he noted that Iran may be willing to tolerate economic pain to press its advantage in negotiations with Washington.