US-Iran economic and maritime blockade

The United States has implemented a maritime blockade and new economic sanctions against Iran, leading to a near-total halt in Iranian oil exports. U.S. President Donald Trump characterized the blockade as ‘100 percent successful,’ suggesting a strategy of economic ‘strangulation.’

In response, Iran has condemned the sanctions as ‘economic terrorism’ and a crime against humanity. The Governor of the Central Bank of Iran, Abdolnaser Hemmati, reported that the stoppage of oil exports has severely impacted the nation’s primary foreign exchange revenue. The economic pressure is compounded by the freezing of Iranian foreign exchange reserves and the failure to release funds expected under the Islamabad Memorandum.

Recent developments indicate that the supply of Iranian oil to Chinese refineries is facing significant pressure as available stocks rapidly deplete. Following the reintroduction of U.S. sanctions in mid-July, which targeted Iranian ports, a growing fleet of stranded vessels has emerged. Data from Kpler shows approximately 40 million barrels of crude oil near Singapore, with only 10% remaining uncollected, while at least 41 million barrels are reportedly stuck in vessels within the Persian Gulf. This shortage has caused offers for ‘Iranian Light’ crude to rise significantly above the ICE Brent benchmark, with analysts predicting a substantial lack of new supplies starting in late September.

U.S. Treasury Secretary Scott Bessent has committed to implementing what he described as the ‘greatest coordinated economic blockade in global history’ against Tehran. President Trump has further signaled an intent to conduct a crushing economic campaign targeting any nation conducting significant trade with the Islamic Republic to achieve maximum isolation.