Even as Iran maintains its chokehold on the Strait of Hormuz, the Islamic Republic increasingly finds itself squeezed by an American blockade threatening its oil industry. The situation isn’t as dire as President Donald Trump recently described, colorfully suggesting pipelines could start exploding within days.
10 current and former Mexican officials accused in US indictment of aiding drug traffickingTrump rejects Iran 's latest proposal as Democrats confront Hegseth over warThe first Kentucky Derby since the death of trainer D. Wayne Lukas has a different vibe'Disclosure Day' answers questions from 'Close Encounters of the Third Kind,' Josh O’Connor saysPowell plans to remain on Fed board, cites legal actions by Trump administrationHow 2 men claimed an absurd record by driving an old 3-wheel car the length of AfricaViral phenomenon in Argentina has young people identifying themselves as animalsOne Tech Tip: Logging on at a cafe?
Privacy and security guidelines for remote workersDemocrats investigate as Trump OKs almost $2 billion in taxpayer money to end offshore wind projectsCDC warns of drug-resistant salmonella infections linked to backyard poultryTakeaways from AP's report on the push for raw milk intensifyingAI is giving bad advice to flatter its users, says new study on dangers of overly agreeable chatbotsStir well, slap lightly.
Tips for making a mint julep worthy of the Kentucky Derby'If my people': Here's why the Bible passage Trump read aloud is so potent and polarizingArqueólogos en Pompeya usan IA para reconstruir rostro de una víctima de erupción del Vesubio
Privacy and security guidelines for remote workersDemocrats investigate as Trump OKs almost $2 billion in taxpayer money to end offshore wind projectsCDC warns of drug-resistant salmonella infections linked to backyard poultryTakeaways from AP's report on the push for raw milk intensifyingAI is giving bad advice to flatter its users, says new study on dangers of overly agreeable chatbotsStir well, slap lightly.
Tips for making a mint julep worthy of the Kentucky Derby'If my people': Here's why the Bible passage Trump read aloud is so potent and polarizingArqueólogos en Pompeya usan IA para reconstruir rostro de una víctima de erupción del VesubioThe sun rises behind a tanker anchored in the Strait of Hormuz off the coast of Qeshm Island, Iran, Saturday, April 18, 2026. In this photo released by Tasnim News Agency, a Revolutionary Guard Navy speedboat approaches the cargo ship Epaminondas during what state media described as the seizure of one of two vessels accused of violations in the Strait of Hormuz, April 21, 2026.
In this photo released by Tasnim News Agency, Revolutionary Guard Navy armed men climb aboard the cargo ship MSC Francesca during what state media described as the seizure of one of two vessels accused of violations in the Strait of Hormuz, April 21, 2026. The sun rises behind a tanker anchored in the Strait of Hormuz off the coast of Qeshm Island, Iran, Saturday, April 18, 2026.
The sun rises behind a tanker anchored in the Strait of Hormuz off the coast of Qeshm Island, Iran, Saturday, April 18, 2026. In this photo released by Tasnim News Agency, a Revolutionary Guard Navy speedboat approaches the cargo ship Epaminondas during what state media described as the seizure of one of two vessels accused of violations in the Strait of Hormuz, April 21, 2026.
In this photo released by Tasnim News Agency, a Revolutionary Guard Navy speedboat approaches the cargo ship Epaminondas during what state media described as the seizure of one of two vessels accused of violations in the Strait of Hormuz, April 21, 2026. In this photo released by Tasnim News Agency, Revolutionary Guard Navy armed men climb aboard the cargo ship MSC Francesca during what state media described as the seizure of one of two vessels accused of violations in the Strait of Hormuz, April 21, 2026.
In this photo released by Tasnim News Agency, Revolutionary Guard Navy armed men climb aboard the cargo ship MSC Francesca during what state media described as the seizure of one of two vessels accused of violations in the Strait of Hormuz, April 21, 2026. may be forced to dramatically reduce or cease production from some of its wells, perhaps beginning in as little as two weeks, experts say.
The situation likely isn’t as dire as U.S. President Donald Trump recently described, colorfully suggesting pipelines could start exploding within days. But once shut down, production from the aging wells may not be restarted so easily, if at all, undermining Iran’s future oil output. Iran appears to have begun dialing back production already, analysts say, to avert outright shutdowns.on Iranian oil shipments already at sea.
The U.S. military has seized at least two tankers off Asia believed to be carrying Iranian oil. The Bank of England is expected to keep interest rates on hold as it weighs the impact of Iran war Iran’s leaders “are really resisting” shutting down oil wells because of how painful that would be long-term, said Miad Maleki, a former sanctions expert at the U.S. Treasury who is now a senior fellow at the Washington-based Foundation for Defense of Democracies.
“They’ve been under sanctions, they’ve been isolated for 47 years now. Those oil wells are not maintained well. Their machinery is not maintained well,” Maleki said. Once shut off, he added, the wells won’t easily “snap back after a few months.
”Iran had been pumping over 3 million barrels of crude oil a day before the war, with a little more than half going toward its domestic market. But since the American blockade began on April 13, ships have been filled with oil and unable to get out.
“It looks like there’s been a significant slowdown in production,” said Antoine Halff, the co-founder and chief analyst at Kayrros, an environmental intelligence company that tracks emissions and energy supply chains. He pointed to signs that storage is not filling as fast as usual at Kharg Island, Iran’s main oil export terminal in the Persian Gulf.
Kpler, a firm monitoring commodities markets, said it believes Iran has enough capacity left to store about two weeks worth of oil production, even after reducing output.
“While the immediate revenue impact is limited, operational constraints are now forcing production cuts and setting up a delayed but significant financial squeeze,” wrote Homayoun Falakshahi, an analyst at Kpler. Wood Mackenzie, another oil analysis firm, estimates Iran will run out of storage capacity in about three weeks.
“If the blockade persists, cuts become inevitable,” wrote Alexandre Araman of Wood Mackenzie. Shutdowns of more than a month “risk long-term damage” to Iran’s oil reservoirs, he wrote, adding that recovering older fields “remains uncertain. ”From the moment it first struck oil in 1908, Iran’s oil industry has been entangled in the region’s politics. A move to nationalize Iran’s oil fields and wrest control from the British sparked the CIA-backed 1953 coup that cemented Shah Mohammad Reza Pahlavi’s rule.
That also lit a long fuse to Iran’s 1979 Islamic Revolution that toppled the shah. During the revolution, oil workers went on strike and brought production down from 6 million barrels a day to around 1.5 million. Iran’s oil industry never recovered and faced decades of international sanctions, during which its infrastructure aged and faltered. In his first term, Trump exerted a “maximum pressure” campaign, hiking sanctions to severely cut Iran’s oil exports.
Forced to store oil in tankers at sea, the Iranian government lost tens of billions of dollars in revenues. Still, the pressure failed to push Tehran into reaching a nuclear deal with the U.S. Now Iran faces a combination of hiked sanctions and the blockade. Trump on Tuesday claimed that Iran was “in a ‘State of Collapse.
’” U.S. Treasury Secretary Scott Bessent piled on, writing on X, “Iran’s creaking oil industry is starting to shut in production thanks to the U.S. BLOCKADE. Pumping will soon collapse. GASOLINE SHORTAGES IN IRAN NEXT! ” There have been no immediate signs of any gasoline shortages in Iran.
However, Iran does seem to be acknowledging some of the pain indirectly. A segment on state TV, which is run by hard-liners, included journalists discussing the possibility of an oil storage crisis. One noted that if empty tankers get blocked from returning to Iran, “we won’t be able to export. ” Oil Minister Mohsen Paknejad on Monday praised oil terminal staff for their “continuous perseverance.
” Maleki, the analyst from the Foundation for Defense of Democracies, said that if the blockade continues and production slows further or halts, oil workers could potentially lose their jobs — which could cause new unrest.
“In 1979 when the oil industry was disrupted, in the 1980s war with Iraq ... you can go and look at to see how effective they were in really pressuring the regime,” he said. “It’s really going to affect some of the most strategic provinces in Iran and the most strategic industry.
”, news director for the Gulf and Iran for The Associated Press, has reported from each of the Gulf Cooperation Council countries, Iran and other locations across the Mideast and the wider world since joining AP in 2006. Gambrell is the news director for the Gulf and Iran for The Associated Press. He has reported from each of the Gulf Cooperation Council countries, Iran and other locations across the world since joining the AP in 2006.
Supreme Court ruling weakens a key tool of the Voting Rights Act
Donald Trump Military And Defense Oil And Gas Industry Iran Government Energy Industry General News Blockades Sanctions And Embargoes International News Politics Mohammad Reza Pahlavi Business Iran Antoine Halff Washington News Alexandre Araman Scott Bessent Jon Gambrell World News World News Washington News
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Deadlock over Iran's nuclear program and the Strait of Hormuz cripples peace effortsTwo months after the U.S.-Israeli attack on Iran started the war, peace talks are on hold, with control of the Strait of Hormuz and the future of Iran's nuclear program as the two main points of contention.
Read more »
Trump claims Iran is in 'state of collapse,' wants Strait of Hormuz re-openToday's Video Headlines 04/28/26
Read more »
Trump claims Iran is in ‘State of Collapse’ and begging US to open Strait of HormuzPresident Donald Trump claimed that Iranian officials have requested the United States drop its blockade of the Strait of Hormuz.
Read more »
First full gas tanker exits Strait of Hormuz since Iran war beganOn Monday, April 27th, ships can be seen from Oman around the Strait of Hormuz as peace talks have been stalled. President Trump called off sending a US delegation to Pakistan for peace talks with Iran – nixing a trip he said would be a waste of time.
Read more »
Trump warns Iran ‘better get smart soon’ as he weighs military options over Strait of HormuzCourtney Kube is a correspondent covering national security and the military for the NBC News Investigative Unit.
Read more »
Oil-Starved Japan Lobbied Iran To Get Tanker Through Strait of HormuzEnergy-hit Japan is set to draw down another 20 days of strategic oil reserves on Friday.
Read more »