Iran Halts Oil Production as Storage Fills; U.S. Blockade Diverts 70 Vessels

According to Jin10 and U.S. Treasury Secretary Bessent on May 14, Iran's oil storage has reached capacity and Tehran will be forced to halt production. After the U.S. imposed a blockade on Iranian oil exports, the key challenge is how long Iran can store the oil it cannot export before facilities are saturated. Bessent stated during a CNBC interview that over the past three days, Iranian tankers have been unable to load at Kharg Island, the country's primary crude terminal, as the U.S. blockade prevents vessel transit in the Persian Gulf.

Within the first month of the blockade, the U.S. military has forced approximately 70 vessels allegedly bound for or departing Iranian ports to alter course.