Iran’s oil exports have stalled since the U.S. blockade began on April 13, forcing the country to store 120 million barrels onshore and 32 million in floating tanks. Kharg Island is swelling with unsold crude, threatening a storage collapse in 25‑30 days.

The blockade cuts off 98% of Iran’s oil traffic through the Strait of Hormuz, eroding a vital revenue stream and compelling Tehran to cut production at some wells. Analysts warn that a 40‑45 day storage window could leave older wells permanently shut down.

With southern ports closed, Iran is redirecting imports via land routes from Turkey, Pakistan, and Russia’s Caspian Sea. Though these corridors can’t replace Gulf exports, they offer a lifeline for essential goods, easing pressure on an economy already strained by 60% inflation and a collapsing rial.

The situation underscores the blockade’s dual economic and strategic impact, forcing Iran to weigh costly production cuts against the risk of a full blow‑out of its oil infrastructure. The outcome will shape Tehran’s leverage in any future U.S. negotiations.