Iran’s aging tankers used for oil reserves as blockade strains storage capacity

Lead

As the US naval blockade of Iranian ports enters its fourth week, Iran is resorting to increasingly unorthodox measures to store crude oil it can no longer export, according to multiple reports. Satellite imagery and tracking data show a nearly 30-year-old supertanker, the Nasha, has been re-mobilized to hold approximately two million barrels off the coast of Kharg Island, while other vessels and improvised containers are being pressed into service. Analysts warn that Iran's storage capacity could be exhausted within weeks, potentially forcing the country to curb production.

Coverage Comparison

Reporting on the blockade and its effects has been consistent across outlets, though each brings a distinct focus. ABC Australia emphasized the economic strain on Iran and the "game of chicken" between Tehran and Washington, quoting Ali Vaez, Iran program director at the International Crisis Group. Al Jazeera provided a detailed explainer on the Strait of Hormuz's strategic importance and the mechanics of the blockade. The Jerusalem Post, which published multiple articles on the topic, focused on the technical and intelligence aspects, including satellite imagery analysis and Western intelligence estimates. TASS, the Russian state news agency, highlighted comments from US Treasury Secretary Scott Bessent, who predicted Iran would soon have to shut in wells.

Key Claims

Blockade and export reduction: All sources agree that the US imposed a naval blockade on April 13, effectively preventing Iranian oil tankers from leaving port. According to a US official quoted by the Jerusalem Post, "the blockade is working to perfection; there is no economic trade going into or out of Iran." One report, citing data from the analytics company Kpler, indicated that Iran's oil exports have dropped to 567,000 barrels per day since the blockade began, though this figure has not been independently verified by other outlets.

Storage strain: Multiple sources report that Iran's onshore storage facilities are rapidly filling. The Jerusalem Post cited two Western intelligence sources estimating that Iran could run out of storage capacity within 15 to 60 days. Kpler's analysis, reported by Bloomberg and cited by Al Jazeera, suggested a tighter window of 12 to 22 days. Treasury Secretary Bessent told Fox News that storage is "rapidly filling up" and that Iran may have to begin mothballing its oil wells "in the next week."

Unorthodox storage methods: Iran is using a variety of improvised storage solutions, according to reports from The Wall Street Journal and United Against Nuclear Iran (UANI), as cited by the Jerusalem Post. These include old sites, improvised containers, and aging tankers like the Nasha, which was built in 1996 and had been idle for nearly three years. Satellite imagery has also shown empty tankers loading oil at Kharg Island and other ports, with some vessels reportedly using "spoofing techniques" to disguise their movements, as reported by the maritime security firm Windward.

Potential production cuts: If storage capacity is exhausted, Iran would be forced to make significant decisions about its oil production. Analysts note that Iran's extraction and refining systems cannot simply be shut down without risking damage to infrastructure, particularly at Kharg Island, where 90% of Iranian oil shipments are processed. However, some experts suggest Iran may choose to halt production "fairly aggressively" by choice rather than necessity, as part of its strategy in the standoff with the US.

Perspectives

US perspective: The Trump administration views the blockade as a key lever to force Iran to the negotiating table. President Trump has warned that Iranian oil pipelines "may explode soon" if the blockade continues, and Treasury Secretary Bessent has expressed optimism that oil prices will fall once the conflict ends, partly due to the UAE's decision to leave OPEC.

Iranian perspective: Tehran has condemned the blockade as "state piracy" and accused the US of violating international law. Iranian officials have framed the situation as a test of resolve, with First Vice President Mohammad Reza Aref stating that "the security of the Strait of Hormuz is not free" and warning that Iran will not provide free passage while its own exports are restricted.

Analyst perspective: Experts are divided on how long Iran can sustain its current production levels. Some, like Ali Vaez of the International Crisis Group, describe a "game of chicken" in which both sides believe they have more staying power. Others point to the practical limits of storage capacity and the risk of oil spills from aging tankers, which could cause environmental damage and further complicate Iran's position.

Outlook

As the blockade continues, Iran is exploring overland export routes, including rail shipments to China, according to The Wall Street Journal. However, these alternatives are unlikely to replace the volume lost through the maritime blockade. The coming weeks will be critical: if storage capacity runs out, Iran may be forced to cut production, a move that could have significant economic and political consequences for the regime and global oil markets alike.