Iranian oil held in floating storage fell to 866,000 barrels by mid-October as the US naval blockade restricted shipments, OilPrice.com reported, citing Wall Street Journal coverage of Kpler data. The decline points to further pressure on global oil availability, with the stockpile that had supported deliveries to China almost exhausted.
Iran had nearly 150 million barrels stored at sea before Washington imposed its blockade on Iranian ports in April, according to the report. Holdings dropped below 50 million barrels by mid-June, when the United States removed the restrictions following a ceasefire agreement with Tehran. That agreement broke down in mid-July, bringing renewed hostilities and the reinstatement of the blockade. Floating inventories subsequently dwindled to the October level reported by Kpler.
Homayoun Falakshahi, Kpler’s head of crude oil analysis, told the Wall Street Journal that Iranian oil was no longer available for discharge in China. His assessment, relayed by OilPrice.com, highlights the loss of stored cargoes available to that destination. The figures concern oil held in floating storage, rather than Iran’s underground crude reserves.
Falakshahi also suggested that Washington was counting on economic pressure either to bring Tehran back to negotiations over a nuclear agreement or to trigger domestic protests that the Iranian authorities would struggle to contain. Iran rejected suggestions that its economy was nearing collapse. Its central bank governor, quoted in the Wall Street Journal report, maintained that the economy had shown considerable resilience.
The economic consequences extend beyond Iran, OilPrice.com reported. Fuel prices remained at record levels, particularly diesel, while President Trump’s approval ratings had fallen ahead of the November midterm elections. Prospects for negotiations remained difficult, with Iran’s president and foreign minister expressing distrust of the United States that week. Separately, the report cited a Moody’s calculation earlier in the month putting the total cost of the Iran war to US households at $265 billion.