US Blockade Brings Iranian Oil Exports to Near-Zero

Iran's crude oil exports have effectively vanished from international markets due to a US naval blockade and tightened sanctions. The shipping blockade, which was reimposed in mid-July, has halted Iranian crude exports according to Reuters.

Air tanker tracking firm TankerTrackers estimates that Iran's crude production has decreased significantly, falling roughly to the level needed for domestic consumption and refining. This suggests that the export collapse is being accompanied by a major reduction in production rather than barrels piling up at Iranian terminals.

The US Treasury has targeted Iran's oil lifeline through various measures, including sanctions on Chinese companies and vessels involved in Iran's oil trade. In August, the Treasury expanded sanctions exposure to shipping and other sectors with 'Operation Economic Outcast', targeting networks accused of transporting Iranian crude and petroleum products.