Iran's "Clever" Strategy for Oil Exports Amid US Blockade

Pressure on Iran’s oil exports is intensifying following the United States (US) imposing a naval blockade on shipping activities to and from Iranian ports. However, amid these restrictions, Tehran is still finding ways to keep its oil flowing to global markets. Citing Anadolu Agency on Friday (17/4/2026), ship tracking data shows that Iran has sent approximately 9 million barrels of crude oil from floating storage in the Gulf of Oman since the blockade took effect on 13 April 2026. In addition, around 2 million barrels more were shipped a day before the official blockade was imposed. This indicates that Iran anticipated these restrictions by accelerating shipments from available stocks. The use of floating storage is key to Iran’s current strategy. When access to and from ports is limited, oil already stored on tankers at sea becomes an alternative to continue supplying the market. Moreover, this strategy provides logistical flexibility. Oil already at sea can be redirected to buyers through various mechanisms, including ship-to-ship transfers, which have long been used in Iran’s oil trade under sanctions. However, this approach is not without limits. Floating storage capacity remains limited, and the sustainability of this strategy heavily depends on Iran’s ability to maintain outflows from those stocks. The US blockade directly targets Iran’s main export routes, which have relied on sea shipments through the Strait of Hormuz and surrounding areas. This step was taken after negotiations between the US and Iran failed, subsequently heightening geopolitical tensions in the Middle East region. Since the blockade was imposed, shipping activities in the area have been immediately affected. Several ships have reportedly turned back, while traffic through the Strait of Hormuz has sharply declined. Market players, including traders and shipowners, are now closely monitoring whether Iran can maintain exports through alternative routes such as floating storage or its shadow fleet.