US Naval Blockade Halts Iran's Oil Exports Again

Iran's oil exports have come to a standstill as Kharg Island, which handles around 90% of the country's crude oil exports, has gone quiet under a reimposed US naval blockade.

The blockade, first established on April 13, had previously halted tanker loadings for multiple consecutive days in May. A brief reprieve between mid-June and early July allowed Iran to ship an estimated 40 to 70 million barrels out the door, mostly to Asian buyers.

However, around July 7, the restrictions snapped back into place, effectively cutting off a nation's economic lifeline for the second time in three months. The blockade restricts port access and controls movement through the Strait of Hormuz, isolating crude oil sitting in storage facilities and aboard tankers.

The physical infrastructure on Kharg Island remains largely intact, but access has become the problem. Under normal conditions, the island processes between 1.1 and 1.5 million barrels per day.