US Blockade Triggers Iran's Fuel Crisis Amid Ongoing Conflict
A severe fuel shortage is gripping Iran, exacerbated by a US naval blockade that has limited its ability to import petrol. Long queues have formed at petrol stations across the country, including in the capital Tehran, as motorists rush to fill their vehicles. The Energy Optimisation Organisation has warned of a critical shortfall in petrol, with a deficit of 15 million liters against its total daily demand of 135 million liters.
The US blockade, which began on July 14, has severely impacted Iran's ability to import fuel, compounded by damage sustained by some of its refining capacity due to military actions in February. A limit of 20 liters of fuel per vehicle has been imposed at some stations, requiring drivers to make multiple return trips to fill their tanks.
The impact of the blockade extends beyond petrol, with a sharp decline in Iran's oil exports and Chinese receipts of Iranian oil dropping significantly. Tanker-tracking data suggests that millions of barrels of Iranian oil are trapped due to the blockade, while exports of fuel oil and liquefied petroleum gas (LPG) have also seen a dramatic reduction.
The economic strain on Iran is substantial, with oil and fuel exports accounting for a significant portion of its total exports. Senior officials have characterized the situation as an 'economic war' and expressed confidence in the government's ability to overcome these challenges.