US Imposes Blockade on Irans Strategic Oil Shipping Route in Persian Gulf

US Imposes Naval Blockade on Iranian Ports

The United States has imposed a naval blockade on Iranian ports since April 13. According to President Donald Trump, this blockade is causing significant financial losses for Iran, with estimates suggesting that the country is losing $500 million per day due to the restrictions.

The US Navy has fired on and seized an Iranian-flagged tanker near the Strait of Hormuz, and redirected ships carrying cargo to or from Iran. In response, Iran has closed the Strait of Hormuz to all foreign shipping and captured several foreign-flagged ships.

Iran’s First Vice President Mohammad Reza Aref stated that “the security of the Strait of Hormuz is not free” and that one cannot restrict Iran’s oil exports while expecting free security for others. He emphasized that stability in global fuel prices depends on a guaranteed end to economic and military pressure against Iran.

The US naval blockade has affected Iran’s trade, particularly its oil exports through the Strait of Hormuz. According to Kpler, a trade intelligence firm, Iran exported 1.84 million barrels per day of crude oil in March and has shipped 1.71 million bpd so far in April. The price per barrel of Iranian oil has not fallen below $90 per barrel over the past month.

Iran’s oil exports account for about 80 percent of its total oil exports, with the country earning at least $4.97 billion from its ongoing oil exports since the start of the US naval blockade. This is a significant increase compared to before the war, when Iran was earning around $115 million per day or $3.45 billion in a month.

Analysts believe that the blockade is hurting Iran but also note that the country has the economic and political will to sustain it. A full ceasefire could only work if the US naval blockade is lifted, according to Mohammad Bagher Ghalibaf, Iran’s parliamentary speaker and lead negotiator in ceasefire talks.

Source: Al Jazeera