Iran's crude oil reserves in tankers of the Islamic Republic that were stationed in Asian waters have been completely depleted by mid-October 2023. These reserves, which served as a backing for oil exports and revenue generation for the regime during the war, no longer exist.
Continuation of Oil Exports in Critical Conditions
The Islamic Republic had managed to continue gradual oil sales to China and earn billions of dollars by holding millions of barrels of crude oil in dozens of tankers in Asian waters throughout much of the war. However, due to the U.S. naval blockade, the Islamic Republic is unable to replace the crude oil shipments needed to continue exports to Chinese refineries.
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Analysis of the Current Situation
Homayoun Falakshahi, head of crude oil analysis at Kepler, stated that there is no oil left for the Islamic Republic to deliver to China. This situation directly impacts the Islamic Republic's oil revenues and could further harm the crisis-stricken economy of the country. Iran's economy has already been facing rampant inflation and widespread shortages of goods.
The U.S. Central Command, CENTCOM, announced that the naval blockade has so far deprived the Islamic Republic of at least $25 billion in oil revenues. This revenue reduction will ultimately limit the Islamic Republic's ability to replace factories and military equipment that have been destroyed during the war.
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