Iran’s Oil Storage Crisis Deepens Under US Blockade
Iran is turning to abandoned tanks and old containers at key southern hubs like Kharg Island and Asaluyeh to hold excess crude, as a US naval blockade sharply restricts exports during the ongoing 2026 conflict.
Kpler tracking data shows onshore storage is running critically low, with usable capacity equivalent to just 12-22 days at current production levels of around 2 million barrels per day. Tehran is now reactivating idle tankers for floating storage to buy more time.
If the blockade holds and storage fills completely, Iran could face forced production cuts within weeks. Shutting in wells risks long-term damage to reservoirs from pressure buildup, a serious blow to the regime’s oil-dependent economy.