Financial Times report: US naval blockade halts Iran's oil exports

The US naval blockade on Iran's ports has brought oil exports to a near standstill, according to the Financial Times. Tracking and satellite data show that no tankers have been loaded at Kharg Island, through which about 90% of exports pass, for a week. Tehran has begun reducing output at fields, but experts estimate it will not compromise in negotiations.

The renewed naval blockade imposed by the United States on Iran's ports has brought Iranian crude oil sales to a near standstill, according to the Financial Times. Based on vessel tracking data and satellite imagery, no oil tanker loadings have been recorded at Kharg Island – Iran's main export terminal, through which about 90% of the country's total oil exports pass – for at least a week. The US reinstated the naval blockade in mid-July after the temporary deal to open the Strait of Hormuz collapsed. According to the report, based on tracking companies Kpler and Energy Aspects, activity at Kharg Island came to a complete halt on July 31. Maritime intelligence firm Windward added that satellite imagery shows the island's three loading berths remain empty, and on Tuesday only 16 vessels were in the waiting area – the lowest number since the beginning of last month. The UANI organization noted that no tanker loaded with Iranian oil has been detected leaving the Gulf since July 12. Despite the terminal shutdown, storage tanks have not filled up, indicating reduced output at fields. For now, Iran continues to receive revenue from tankers that left during the ceasefire and are arriving in Asia, but this flow is expected to cease in the coming weeks. Experts estimate that Iran is willing to absorb a heavy economic cost and will not compromise in negotiations, as it feels it has the upper hand in the Strait of Hormuz. Brent crude rose 1.3% over the weekend to $83.55 per barrel.