Washington’s naval blockade, reinstated on July 14, has achieved what years of sanctions could not: it has stopped Iranian crude from reaching China, the Middle Kingdom’s only major remaining oil customer. According to data from Kpler, Vortexa and TankerTrackers.com, no Iranian cargoes have successfully transited the Strait of Hormuz since mid‑July.
Export volumes plunge
In August, Iran loaded roughly 220,000‑255,000 barrels per day of crude and condensate, a steep drop from about 740,000 bpd in July and roughly 2 million bpd in March. Analysts say the collapse in oil revenue could force Tehran to print money, risking even higher inflation – the International Monetary Fund estimates Iran’s inflation rate is near 70% this year.
Blockade mechanics
The U.S. operation does not cover Iran’s entire coastline. It is positioned south of the Gulf, between the Gulf of Oman and the Arabian Sea, where Navy vessels inspect ships departing from or approaching Iranian ports. Beyond the blockade zone, a shadow fleet of Iran‑linked tankers continues to operate, with dozens active in the Gulf of Oman and many making deliveries in Asia.
Floating storage and stranded tankers
With fresh supply halted, Iran can only sell oil stored on tankers in Asian waters. Floating storage volumes have risen, with about 41.7 million barrels parked west of the blockade line as of August 26, while total Iranian crude afloat fell to 107 million barrels from 135 million barrels earlier in the month. Empty tankers cannot return to Iranian ports, leaving many vessels idle offshore; 27 sanctioned tankers are reported to be waiting off Sri Lanka in ballast.
China’s limited options
China can still purchase oil that is already floating near its waters, but new shipments are unavailable until the blockade eases. Traders note that cargoes slated for September and October delivery to China remain on the market, though volumes are lower than in previous months.
Washington has warned countries that continue trading with Tehran, but has stopped short of imposing immediate penalties, seeking to increase pressure while avoiding a broader escalation.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
