U.S. Blockade Leaves Iran's Shadow Tankers Empty, Report Says
A report says Iran's shadow fleet tankers have been drained of oil after a U.S. blockade disrupted Tehran's shipments to China. The loss of floating crude reserves removes a major source of revenue and strategic leverage for Iran. Meanwhile, Gulf oil exports have reportedly recovered beyond prewar levels despite attacks in the Strait of Hormuz.
After Operation Economic Outcast began, Washington’s mid-July port blockade stranded many China-bound Iranian tankers in Asian ports. By mid-October, analysts at Kpler said the offshore crude stockpile was exhausted, leaving no replacement supply for Chinese refineries. U.S. Central Command estimates the blockade has cost Tehran at least $25 billion in oil revenue.
Before the war, Iran held about 135 million barrels overseas, much near Malaysia and Singapore, valued at roughly $10 billion or more after prices rose. It had used ship-to-ship transfers to supply China despite sanctions. Meanwhile, Gulf exports have exceeded prewar levels via a U.S.-protected improvised shipping arrangement, even amid attacks in the Strait of Hormuz.
The loss of this floating reserve could deepen pressure on Iranian households already facing inflation and shortages, while reducing Tehran’s fiscal room. Chinese refiners may need to find other suppliers, potentially affecting regional oil flows and prices. Gulf shipping crews and U.S. naval personnel may remain exposed to attacks in the Strait of Hormuz, even as exports recover. The wider effect may be a more constrained Iran and a shipping market adapting to security risks.