US Blockade Shrinks Iran's Oil Exports to Fraction of Pre-War Levels

The US blockade of Iran's ports and the Strait of Hormuz has severely impacted the country's oil exports, reducing them to one-seventh of their pre-war levels. Before the conflict escalated in late February 2026, Iran was shipping between 1.5 and 1.85 million barrels per day. However, by May 2026, this figure had plummeted to around 260,000 bpd.

The blockade's grip has been tightened, with a renewed US naval presence making it difficult for Iranian tankers to access the strait. An interim deal in June briefly loosened the constraints, allowing loadings to recover to approximately 1.3 million barrels per day, but this window did not last long.

The financial toll on Iran has been substantial, with the country reportedly losing around $6 billion in oil revenues during the earlier blockade periods alone. This has forced production cuts of approximately 1.2 million barrels per day, as there is simply nowhere for the crude to go.