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Iran’s oil exports stall as Kharg Island idles

Financial Times Companies •
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No tankers have loaded at Kharg Island, Iran’s main oil export terminal, for at least a week, according to shipping and satellite data providers, suggesting the renewed US naval blockade has brought Tehran’s crude sales to a halt.

Kharg Island fell idle on July 31, with satellite images showing all three loading bays empty for a sustained period. Only 16 vessels were anchored around Kharg on Tuesday, the lowest number since early last month. Roughly nine out of every 10 barrels of crude exported by Iran are loaded on the tiny coral island in the northern Gulf.

The blockade has halted exports, but the loss of revenue is unlikely to force Tehran to compromise. Richard Bronze of Energy Aspects notes that Iran may tolerate economic pain to press its advantage. Meanwhile, Kpler and lobbying group United Against A Nuclear Iran Action, Inc. report 26 Iran‑flagged tankers have reached Malaysia, where crude is transferred before delivery to Chinese refineries.

The blockade also prevents Iran from replenishing its fleet of empty tankers. Vessels that have discharged in Asia are not returning, with several waiting off Sri Lanka, Oman and Pakistan. Benchmark Brent crude was priced just under $82 a barrel in London on Friday as traders await a deal to open the Strait of Hormuz.