Iran Loses $4.8B Amid U.S. Blockade and Oil Tanker Logjam

The U.S. naval blockade is costing Iran about $4.8 billion in lost oil revenue. This blockade has been in place for the last 20 days, leading Iran to cut its oil production. Right now, 31 tankers carrying 53 million barrels of Iranian oil are stuck in the Gulf. Two ships have also been seized. The U.S. Central Command has diverted 48 vessels trying to cross the blockade. Iran is proactively reducing its output to avoid filling up its storage tanks. Experts say Iran has about a month left before it faces a complete shutdown of its wells. In response, Iran is expanding its storage capacity using tankers. This week, 18 tankers linked to Iran have been spotted in the Persian Gulf, holding up to 35 million barrels of crude oil. However, many of these tankers are old and poorly maintained. Despite the challenges, Iran continues to load oil at its main export terminal, Kharg Island, albeit at a reduced rate. This situation affects global oil supply and prices, which matters to everyone who fills up at the gas station.