US Naval Blockade Halts Iranian Oil Exports at Key Kharg Island Terminal

Iran's main oil export terminal on Kharg Island has seen no tanker loading for at least a week, signaling a halt in Tehran's crude oil sales due to a renewed US naval blockade. According to maritime tracking firm Kepler and energy consultancy Energy Aspects, operations at the island stopped on July 31. Satellite images analyzed by maritime intelligence company Windward showed that all three loading berths at Kharg remained empty for an extended period. On Tuesday, only 16 vessels were anchored in the waiting area around the island, the lowest count since early last month.

Kharg Island is critical to Iran's oil industry, as about 90% of its crude exports are loaded there, given much of Iran's coastline is too shallow for large tankers. Richard Bronson, head of geopolitics at Energy Aspects, confirmed the blockade's effectiveness, noting minimal tanker movement in or out. However, he suggested that the loss of revenue is unlikely to force Tehran to compromise in negotiations with Washington at this stage.

Iran had continued loading tankers at Kharg throughout its six-month conflict with the US and Israel, making the current disruption the longest since the war began. The group United Against Nuclear Iran reported no Iranian oil-laden tankers have left the Gulf since July 12. Iran is still receiving income from shipments that departed during a ceasefire, now reaching Asian customers. Twenty-six Iranian tankers have been spotted near Malaysia, a usual transshipment point for oil destined for Chinese refineries. Bronson warned these revenues will likely cease in the coming weeks, describing the situation as a dwindling "hourglass" of income.

The blockade also prevents empty tankers from returning to Iran after offloading in Asia, with some waiting near Sri Lanka and others near Oman and Pakistan. Meanwhile, storage tanks on Kharg have not filled significantly despite the terminal shutdown, suggesting Iran may have reduced oil production to conserve storage capacity, according to Energy Aspects.