US Blockade Strands Iranian Oil Tankers While Gulf Flows Recover
The US naval blockade on Iran has left dozens of oil tankers stranded near its coast, creating unprecedented economic strain on Tehran. According to Bloomberg, citing the group United Against Nuclear Iran, at least 50 tankers loaded with Iranian oil remain anchored, carrying crude, petroleum products, and liquefied petroleum gas (LPG). Empty tankers are also lingering in anchorage areas across the Indian and Pacific Oceans instead of returning to Iranian ports. Additionally, 20 Iranian-flagged vessels are off the coast of Sri Lanka, with one near Oman.
US Treasury Secretary Scott Bessent told Axios that Iran has no oil aboard ships this week, marking a historic first. He noted that 130 vessels have been diverted, and no tankers have docked at Iran’s Kharg Island to load oil. The near-total blockade aims to intensify economic pressure on Tehran.
Meanwhile, oil flows from the Persian Gulf region (excluding Iran) have rebounded, reaching 81% of pre-war levels. Data from Vortexa and Kpler shows that flows of crude and condensate reached 91% of pre-war levels in September, supported by a recovery in Saudi exports. Exports of refined fuels have stabilized at 60%. Despite this recovery, oil prices have stabilized after a 2% drop, with Brent crude trading near $101 per barrel and West Texas Intermediate settling below $90.
Oil prices have risen by over 60% since the start of the war on February 28, disrupting supplies and fueling inflation. However, product shipments remain partly restricted due to Ukrainian strikes on Russian energy facilities.