Iran's Seaborne Crude Exports Remain at Zero Through October 5 Under US Blockade
Key Facts
Iran's seaborne crude oil exports remained at zero through October 5 after halting in the second week of September because of the US naval blockade, according to Vortexa estimates cited by Asharq News, citing Reuters. The 14-day average for these exports had stood at about 230 thousand barrels a day in early September before flows stopped later that month. The report attributed the halt in shipments to the blockade, which effectively prevented crude from leaving, alongside US economic sanctions on Tehran. Iranian seaborne shipments halted as exports from other Gulf countries were recovering some of their pre-war levels, supported by a rebound in Saudi exports. The disruption extended from September into the first days of October, with Iranian crude remaining aboard tankers.
Vortexa estimated total Iranian crude held on tankers at about 83 million barrels in a report dated October 13, according to Reuters reporting published on the EnergyNow website. Of that total, 43 million barrels were stranded west of the Strait of Hormuz because of the US blockade, which impeded shipments from leaving the region. On vessel movements, Asharq News said in an earlier report dated October 6 that empty tankers remained at anchorages far from Iranian ports. Those anchorages were spread across the Indian and Pacific oceans, according to the report, which cited United Against Nuclear Iran. These tankers stayed in place instead of returning to Iran because of the US blockade, while loaded crude remained trapped west of the strait.
The decline in Iranian shipments extended to liquefied petroleum gas, with exports falling 48% month on month, according to Vortexa estimates cited by Investing.com. Exports of the fuel dropped to their lowest level since at least January 2023, according to the report issued on October 13. Across a broader group comprising Iran, Russia and Venezuela, total exports tracked by Vortexa reached 4.73 million barrels a day in September. Total exports from the same countries had reached 6.39 million barrels a day in the same month a year earlier, according to the comparison in the report. The picture thus combined a halt in Iranian seaborne crude flows, lower liquefied petroleum gas shipments and a decline in total exports from the countries covered by the annual comparison.
By contrast, Gulf oil flows excluding Iran recovered during September to more than 81% of pre-war levels, according to the report carried by Asharq News, citing Reuters. A rebound in Saudi exports helped support the recovery in those flows, while Iranian shipments remained subject to the US naval blockade. In its coverage of the recovery in Gulf exports, Asharq said Saudi oil pipelines to the Red Sea were supporting the rebound. It added that the United Arab Emirates' pipelines to Fujairah were also helping restore exports, among the transport routes the two countries rely on. In price developments preceding the publication of Vortexa's report, Asharq cited Bloomberg on October 6 as saying Brent crude held near $101 a barrel, while West Texas Intermediate held below $90.
Alongside the disruption to seaborne shipments, the US Treasury Department announced action against 17 vessels in the shadow fleet linked to transporting Iranian oil in a statement dated October 8. The department said the vessels covered by the action had been carrying Iranian crude to markets in South and East Asia. The transport activities also included Iranian petroleum and petrochemical products, alongside the crude shipments targeted by the US action. Treasury Secretary Scott Bessent said in the statement: "No one who helps Iran evade sanctions is beyond the full force of Treasury's authorities." The department's action against the vessels formed part of the economic pressure accompanying the naval blockade to which Vortexa's report attributed the halt in seaborne crude exports.
When announcing the launch of Operation Economic Ostracism in August, the Treasury Department had warned of the consequences of facilitating transactions linked to Iranian sanctions evasion. It said in its statement: "Any entity that facilitates money laundering or sanctions evasion for Iran risks being cut off from the US financial system." In its October 8 statement, the department noted that the transport network was constantly changing as vessels entered and left it. It said it would continue to monitor, identify and disrupt sanctions evasion attempts as part of its monitoring of the network's activity. On its next steps, Treasury said: "The Treasury Department will continue to monitor, identify and disrupt any attempts to evade sanctions."