Iran oil exports hit six-year low as US blockade tightens pressure

Although Iran has shaken global energy markets by closing the Strait of Hormuz, it is also facing intense pressure from the US naval blockade, which has pushed its oil exports down to their lowest level in six years as floating oil storage begins to shrink.

Amid the tension, Iran is under heavy pressure after exports of crude oil and condensate in May fell to their lowest level in six years, with average exports dropping below 300,000 barrels per day because of the US naval blockade.

Data from oil-shipping analytics firm Vortexa showed that Iranian oil exports in May stood at only 209,000 barrels per day, a sharp drop from 1.34 million barrels per day in April and almost 1.9 million barrels per day in March.

Reuters reported that this level was the lowest since late 2019 to early 2020, when President Donald Trump pursued a “maximum pressure” policy against Iran during his first presidential term.

The collapse in exports came after the United States began enforcing a naval blockade on April 13, aimed at stopping vessels entering and leaving Iranian ports.

At the same time, the global oil market is facing tight supply after Iran closed the Strait of Hormuz, heavily disrupting oil exports from Saudi Arabia, Kuwait, Iraq and the United Arab Emirates.

Claire Jungman, an analyst at Vortexa, said the key factors behind the fall in Iranian oil exports were disruption around the Strait of Hormuz, the US naval blockade, and the reluctance of shipowners, operators, insurers and trading partners to send vessels and crews into the current security-risk environment.

Data from another energy analytics firm, Kpler, reflected the same trend. It estimated Iranian oil exports in May at around 260,000 barrels per day. Although slightly higher than Vortexa’s figure, it was still the lowest level in six years.

Meanwhile, the volume of Iranian oil being stored on tankers at sea has begun to decline, after many vessels gradually discharged oil into China, Iran’s largest oil buyer.

Kpler data showed that about 147 million barrels of Iranian crude and condensate remain in floating storage at sea. Of that, around 67 million barrels are stranded inside the Persian Gulf and the Gulf of Oman.

The volume of oil in floating storage has fallen from a peak of around 190 million barrels in late April.

Iman Nasseri, an analyst at FGE NexantECA, estimated that about 55 million barrels of Iranian crude remain stuck on vessels inside the blockaded area, a lower figure than Kpler’s estimate.

Analysts warned that if the naval blockade continues for about another two months, Iran could face a severe drop in oil available for export to China, or may have almost no volumes ready for delivery.

Homayoun Falakshahi, an analyst at Kpler, said that if the situation drags on, Iran could lose its ability to maintain oil-export levels to China, its key market and a crucial source of energy revenue.

The latest data also showed that China’s imports of Iranian crude fell to 1.10 million barrels per day in May, the lowest level since January 2025. This reflects how the Middle East conflict is directly affecting one of the world’s most important energy routes.

Source: Reuters