Iran's main oil-loading terminals have remained empty for weeks, signifying that a US naval blockade is severely throttling Tehran's exports. No tankers have docked at Kharg Island's crude-export terminals since late August, the longest stretch of inactivity since the start of the US-Iran conflict in February. Crude exports have plummeted from nearly 1 million barrels a day in July to nothing since late August.
This disruption has pushed oil prices higher and fueled a historic rally in freight costs. As Iran's oil disappears from global markets, Chinese refiners are turning to other sources and competing for barrels and ships. In the first two weeks of October, 25 ships were targeted in and around the Strait of Hormuz, compared with 18 incidents in all of September and 15 in August, according to UK Maritime Trade Operations.
Kharg Island handles almost all of Iran's crude exports, with Jask accounting for a small percentage. While Kharg has been idle, no tankers have been seen at Jask either. Satellite images from the EU's Sentinel 1 and 2 orbiters show the terminals empty, though a small ship appeared berthed on Oct. 10, identified as the chemicals tanker Clavel shuttling between Iranian ports.
Separately, tankers were seen docked at jetties off Kharg's southeast tip in mid-September handling liquefied petroleum gas and sulfur shipments.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing