Iran is seeking alternative ways to keep its crude exports flowing despite the US oil blockade, as the country attempts to protect oil revenues and maintain production amid the continuing conflict, Iranian Oil Minister Mohsen Paknejad has said.
Paknejad said Iran’s oil industry had remained operational and was pursuing “various solutions and different measures” to eventually bypass the blockade. He added that Iran had succeeded in moving substantial volumes of crude through the Persian Gulf during the three-week period when the US blockade was lifted between mid-June and mid-July.
However, available tanker-tracking data indicate that the renewed blockade has sharply constrained Iranian exports. Kpler estimates showed Iran loaded about 260,000 barrels per day (bpd) for export in August, down about 80 per cent from 1.7 million bpd a year earlier and more than 50 per cent below the estimated 740,000 bpd recorded in July.
The squeeze on Iranian exports is adding another layer of uncertainty to an already disrupted global oil market. As at the close of trade for the week, Brent crude was trading at $96.28 per barrel, up 0.80 per cent, while WTI stood at $91.48, up 0.20 per cent, reflecting continued sensitivity to supply risks linked to the Iran conflict and disruptions around the Strait of Hormuz.
Iran is also seeking to sustain crude and associated gas production despite the war and US strikes, while China remains its key oil buyer. Beijing has rejected pressure to sever its trade relationship with Tehran, signalling that Chinese demand could provide Iran with an important outlet for crude despite Washington’s sanctions.
The effectiveness of Iran’s efforts to bypass the blockade will therefore remain important for global supply balances, particularly as traders assess how much Iranian crude can reach international markets. A sustained reduction in Iranian exports could tighten available supply and keep Brent exposed to further upside, with direct implications for crude-dependent economies and petroleum product prices.