US Naval Blockade Squeezes Iran’s Oil Exports, Forces Crude onto Floating Storage

Vehicles drive past a giant billboard reading "The Strait of Hormuz remains closed" at the Revolution Square in Tehran on April 28, 2026, (AFP)
Vehicles drive past a giant billboard reading "The Strait of Hormuz remains closed" at the Revolution Square in Tehran on April 28, 2026, (AFP)
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US Naval Blockade Squeezes Iran’s Oil Exports, Forces Crude onto Floating Storage

Vehicles drive past a giant billboard reading "The Strait of Hormuz remains closed" at the Revolution Square in Tehran on April 28, 2026, (AFP)
Vehicles drive past a giant billboard reading "The Strait of Hormuz remains closed" at the Revolution Square in Tehran on April 28, 2026, (AFP)

A US naval blockade of Iranian ports has shrunk Tehran's oil exports, stranding a growing stockpile of crude on tankers as Iranian storage sites run out of space, shipping data showed and analysts said.

With some vessels switching off tracking systems and US forces turning back Iranian tankers, how much crude Iran is delivering to customers, particularly main customer China, is impossible to measure.

Just a handful of carriers carrying Iranian crude have left the Gulf of Oman between April 13-25, oil analytics firm Vortexa said. That's down over 80% from a comparable period in March, when Iran exported 23.4 million barrels, LSEG data shows.

Some of Tehran's vessels have ‌been intercepted by ‌the US after leaving Iranian ports, along with sanctioned container ships and ‌Iranian ⁠tankers in Asian ⁠waters.

EXACERBATING WIDER MARKET TIGHTNESS

"At this stage, we estimate that around 4 million barrels of Iranian crude has successfully moved out of the Gulf of Oman. We are not currently able to confirm whether any of those vessels have since been interdicted," it said in an email to Reuters.

The loss of Iranian supply adds to wider market tightness as the war has effectively closed the Straight of Hormuz, sending prices higher, something the US has sought to avoid.

Last month, ‌the US granted Tehran an unexpected temporary sanctions waiver ‌on energy exports to allow prices to cool.

Benchmark Brent crude oil futures have jumped by about $50 ‌a barrel since the Iran war began on February 28, raising prices of gasoline, ‌diesel and jet fuel.

The International Energy Agency has called it the world's largest oil output disruption.

NO TANKERS EXITED GULF SINCE BLOCKADE - KPLER

Analysts at Kpler said they had not observed any Iranian crude tankers exiting the Gulf of Oman since the blockade began.

US authorities said on Wednesday their blockade was denying ‌Tehran of much-needed revenue from crude exports.

"Right now there are 41 tankers with 69 million barrels of oil that Iranian regime ⁠can't sell," US ⁠Central Command (CENTCOM) said on Wednesday.

Iran's currency, the rial, fell to a record low against the US dollar on Wednesday, highlighting the financial difficulties that face the oil-reliant economy.

Despite the pressure, Iran is still loading crude at its main export hub on Kharg Island, maritime intelligence firm TankerTrackers said.

Satellite imagery shows at least 10 tankers parked off Iran's Chah Bahar port on the Gulf of Oman, it added.

Iran pumped about 3.24 million bpd of crude in February, around half for domestic refining.

Yet, the country may be forced to start cutting output within a week or two, said Kpler analyst Johannes Rauball, with storage scant.

Onshore storage is about 60% full, Kpler said, with stocks above 50 million barrels, and capacity at 86 million barrels.

Capacity constraints could force Iran to curb production in mid-June, consultancy FGE NextantECA estimated on April 15.



US Military Conducts Rapid Response Exercise at Embassy in Venezuela

US Embassy holds emergency and air evacuation drill in Caracas, Venezuela, Saturday, May 23, 2026. (AP Photo/Pedro Mattey)
US Embassy holds emergency and air evacuation drill in Caracas, Venezuela, Saturday, May 23, 2026. (AP Photo/Pedro Mattey)
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US Military Conducts Rapid Response Exercise at Embassy in Venezuela

US Embassy holds emergency and air evacuation drill in Caracas, Venezuela, Saturday, May 23, 2026. (AP Photo/Pedro Mattey)
US Embassy holds emergency and air evacuation drill in Caracas, Venezuela, Saturday, May 23, 2026. (AP Photo/Pedro Mattey)

The US military conducted a rapid response exercise involving Marines and military aircraft in Venezuela’s capital Saturday, over four months after the ouster of then-President Nicolás Maduro.

Two Marine Corps Osprey aircraft, which have characteristics of both a helicopter and a fixed-wing airplane, flew over the recently reopened US Embassy in Caracas. They landed in the parking lot with the downdraft blowing tree branches. Forces then descended from the aircraft.

“Ensuring the military’s rapid response capability is a key component of mission readiness, both here in Venezuela and around the world,” The Associated Press quoted the embassy as saying on Instagram.

Venezuela’s government had announced the drill earlier this week. Foreign Minister Yván Gil said the US would conduct the exercise to prepare “in the event of medical emergencies or catastrophic emergencies.”

The drill comes almost two months after the US formally reopened its embassy in Caracas. The reopening followed the restoration of full diplomatic relations with the South American country after Maduro 's ouster in early January.

Some Caracas residents Saturday gathered near the embassy to watch the aircraft, while a few dozen others gathered elsewhere in the city to protest the exercise. Protesters held a Venezuelan flag with the message “No to the Yankee drill” written over it.

US military aircraft last flew over Caracas on Jan. 3, when elite forces rappelled down from helicopters and captured Maduro and his wife. Both were taken to New York to face drug trafficking charges. They have pleaded not guilty.


Trump Says Negotiators Are Getting Closer to Iran Deal

FILE PHOTO: US President Donald Trump leaves Marine One to board Air Force One en route to Joint Base Andrews, Maryland, as he departs Morristown Airport in Morristown, New Jersey, US, May 22, 2026. REUTERS/Kylie Cooper/File Photo
FILE PHOTO: US President Donald Trump leaves Marine One to board Air Force One en route to Joint Base Andrews, Maryland, as he departs Morristown Airport in Morristown, New Jersey, US, May 22, 2026. REUTERS/Kylie Cooper/File Photo
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Trump Says Negotiators Are Getting Closer to Iran Deal

FILE PHOTO: US President Donald Trump leaves Marine One to board Air Force One en route to Joint Base Andrews, Maryland, as he departs Morristown Airport in Morristown, New Jersey, US, May 22, 2026. REUTERS/Kylie Cooper/File Photo
FILE PHOTO: US President Donald Trump leaves Marine One to board Air Force One en route to Joint Base Andrews, Maryland, as he departs Morristown Airport in Morristown, New Jersey, US, May 22, 2026. REUTERS/Kylie Cooper/File Photo

President Donald Trump said on Saturday that negotiators for the United States and Iran were "getting a lot closer" to finalizing an agreement to end the war, according to an interview with CBS News.

He said a final agreement would prevent Iran from obtaining a nuclear weapon and would ensure that Iran's enriched ⁠uranium would be "satisfactorily handled," ⁠according to CBS.

"I will only sign a deal where we get everything we want," Trump was quoted as saying.

But in the interview with the TV network, Trump also warned that if the US and Iran do not come to an agreement, "we're going to have a situation where no country will ever be hit as hard as they're about to be hit."

Iran, the United States and mediator Pakistan all said on Saturday that ⁠progress had been made in talks on ending almost three months of war.

Trump said he would discuss the latest Iran draft agreement with advisers on Saturday and might make a decision on whether to resume the war by Sunday, he told Axios in a separate interview.

"Either we reach a good deal or I'll ⁠blow ⁠them to a thousand hells," Trump said, according to Axios.

Trump has vacillated between the two poles of diplomacy and military strike since a ceasefire was declared six weeks ago to allow the sides to come to agreement on Iran's nuclear program and on reopening the Strait of Hormuz, a critical oil and gas supply route now controlled by Tehran.

Iran signaled on Saturday “narrowing differences” in negotiations with the US after Pakistan’s army chief held more talks in Tehran, and US Secretary of State Marco Rubio told journalists in India that “there’s been some progress made" and “there may be news later today.”


Rubio Says Progress Made on Iran

US Secretary of State Marco Rubio looks on as he speaks with reporters during a meeting of NATO foreign ministers, in Helsingborg, Sweden May 22, 2026. Julia Demaree Nikhinson/Pool via REUTERS
US Secretary of State Marco Rubio looks on as he speaks with reporters during a meeting of NATO foreign ministers, in Helsingborg, Sweden May 22, 2026. Julia Demaree Nikhinson/Pool via REUTERS
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Rubio Says Progress Made on Iran

US Secretary of State Marco Rubio looks on as he speaks with reporters during a meeting of NATO foreign ministers, in Helsingborg, Sweden May 22, 2026. Julia Demaree Nikhinson/Pool via REUTERS
US Secretary of State Marco Rubio looks on as he speaks with reporters during a meeting of NATO foreign ministers, in Helsingborg, Sweden May 22, 2026. Julia Demaree Nikhinson/Pool via REUTERS

US Secretary of State Marco Rubio said on Saturday that some progress has been made on Washington's dispute with Iran and that the US might have "something to say" on the issue in the coming days.

"There's been some progress done, some progress made, even as I speak to you now, there's some work being done. There is a chance that, whether it's later today, tomorrow, in a couple days, we may have something to say," Rubio told reporters during his visit to New Delhi.

Meanwhile, Iranian foreign ministry spokesman Esmaeil Baqaei said on Saturday that Tehran was in the final stages of drafting a framework for a deal to end the war with the United States.

"Within a reasonable period of 30 to 60 days, the details of these points will be discussed and a final agreement will ultimately be concluded. We are currently in the process of finalizing these memoranda of understanding," he told state broadcaster IRIB.