A reimposed US naval blockade has again halted tanker loadings at Kharg Island, the terminal that handles roughly 90% of Iran's crude oil exports. Iran squeezed 40 to 70 million barrels out during a brief reprieve before restrictions snapped back around July 7. Asian refiners that rely on discounted Iranian crude oil now face the most direct exposure to the renewed disruption.
Kharg Island, the Persian Gulf terminal that handles roughly 90% of Iran's crude oil exports, has gone quiet again. A reimposed US naval blockade is keeping tankers from loading there, cutting off the country's main export channel for the second time in three months.
The blockade first took hold around April 13 and had already halted tanker loadings for several consecutive days in May. A brief reprieve between mid-June and early July let Iran push an estimated 40 to 70 million barrels out the door, mostly to Asian buyers. Then, around July 7, the restrictions snapped back into place.
How the blockade works
Under normal sanctions-era conditions, Kharg Island processes between 1.1 and 1.5 million barrels per day. The US Navy restricts port access and movement through the Strait of Hormuz, effectively isolating crude that sits in storage tanks and aboard tankers. The infrastructure itself remains intact; the problem is access, not damage.
No ocean-going tankers were observed at the terminal for several consecutive days during the May shutdown, so crude that would normally flow to Asian refineries sat in floating storage instead.
A wider military campaign
The blockade sits within a broader US-Israel military confrontation with Iran that began in late February 2026. US forces struck Iranian military installations on Kharg Island in March and April but notably avoided targeting the oil infrastructure itself. Parliament speaker Mohammad Bagher Ghalibaf acknowledged the economic impact of the blockade, yet pointed to higher realized export prices when shipments resumed.
Oil markets brace for another squeeze
Asian refiners that built supply chains around discounted Iranian crude face the most direct exposure to the renewed cutoff. When Kharg Island goes dark, they must source replacement barrels at market rates. When it reopens, they rush to reload, creating temporary demand spikes that distort regional pricing.
Source: Crypto Briefing
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