Iran’s Floating Oil Stocks Run Dry
The US naval blockade has prevented any Iranian or dark fleet tanker from leaving the Gulf for 10 weeks. Iran has been selling crude from floating stocks held mostly off Malaysia to its almost wholly Chinese customer base, but Kpler estimates that the 15mb stock held afloat at the beginning of October will clear by mid-October. With invoices for remaining sales to be cleared within two months, Iran will lose a revenue stream that has provided about 40 percent of government finance by the end of December.
Why it matters: This matters for sanctions, as the depletion of Iran's floating oil stocks shows how maritime enforcement can translate into fiscal pressure on the Iranian state.