Iran Continues to Sell Oil Out of its Floating Storage Reserve

An NITC tanker in a more peaceful era (NITC)

In addition to the inbound Iranian tanker traffic that has passed by the new U.S. blockade of Iranian seaports, Iran continues to load oil and to dispatch tankers from its collection of floating storge vessels in the Gulf of Oman, according to TankerTrackers.com.

These ships are not technically affected by the blockade, as they were already clear and away from Iranian ports at the outset of enforcement, but they have nonetheless allowed Iran to sell another nine million barrels of crude oil to foreign buyers. At present valuation, these shipments are worth somewhere in the range of $900 million - and perhaps more, given their availability as prompt deliverable barrels.

TankerTrackers.com previously identified two U.S.-sanctioned tankers in ballast condition that penetrated the U.S. blockade in recent days, headed for Iran - seemingly without difficulty, as both vessels had AIS enabled. The U.S. Navy has claimed that the blockade has been kept airtight in both directions, and that 13 Iranian tankers have been turned back so far.

In addition to the well-resourced blockade, the U.S. has announced plans to hit Iran's oil sales system with the financial equivalent of a "bomb." The administration has reportedly sent warning letters to banks in China, Hong Kong, the UAE and Oman, cautioning them that they could face U.S. sanctions if they continue to do business with Iranian interests.

"We have told countries that if you are buying Iranian oil, that if Iranian money is sitting in your banks, we are now willing to apply secondary sanctions, which is a very stern measure. And the Iranians should know that this is going to be the financial equivalent of what we saw in the kinetic activities," said Treasury Secretary Scott Bessent on Thursday.

The announcement is a remarkable turnaround from the administration's recent policy of allowing Iran to sell its oil on the open market. Just last month, the White House waived sanctions on already-afloat Iranian oil in an attempt to address supply shortages in the global market - a rare departure from its years-long policy of "maximum pressure" on Tehran's energy revenue stream.

The crackdown comes as the U.S. looks for leverage in diplomatic talks with Iran, currently unfolding and said to be making progress towards a second direct meeting between American and Iranian officials. The Trump administration secured a 10-day ceasefire from the government of Israel to pause its ongoing incursion into Lebanon, a key demand of Iranian negotiators and a significant step towards initiating a second round of talks.