Iran Oil Storage Crisis: Kharg Island Nears Capacity Amid Blockade

Iran is racing to expand oil storage at Kharg Island as it nears capacity due to a U.S. blockade. The country is reactivating a 30-year-old very large crude carrier, the M/T Nasha, to serve as floating storage. This comes as analysts warn that onshore storage is running low. Currently, Kharg Island has about 13 million barrels of spare storage, but inflows are around 1 million barrels per day. At this rate, storage could fill up in just 12 days, pushing the saturation point to late April. Once that happens, Iran may have to shut down wells, risking damage to its oil fields and long-term production losses. Despite ongoing pressures, tankers continue to load crude at Kharg Island. The use of the M/T Nasha shows Iran's efforts to keep oil flowing without relying solely on shore facilities. This situation is critical because Kharg Island is Iran's main oil export hub. Any congestion there can quickly turn into a national economic crisis. How Iran manages this challenge will impact not just its economy, but also global oil markets.