The Blockade on Iran Is Now Hitting Home
The Maritime Executive estimates that Iranian oil exports, 90% of which previously went to China, are likely to run out imminently as the last stocks held afloat are drained, with the last revenues received before the end of the year. Admiral Brad Cooper has said that Central Command has evidence that the cash shortage is now affecting salary and pension payments in Iran's energy, oil, manufacturing, construction, aviation, steel and automotive sectors, and salary payments due to members of the regular military and the IRGC. Cooper also said the U.S. naval blockade was 100% effective in controlling traffic to and from Iranian ports, while regional partners passed 400 vessels and 100 million barrels of oil through the Strait of Hormuz in the previous seven days; the text reports the exchange rate at 2,695,000 rials to the dollar and inflation at 70%, both all-time records.
Why it matters: The item bears on the briefing's maritime security theme because the blockade's effect on Iranian revenue and the IRGC's attacks on shipping link economic pressure to escalation risk in the Strait of Hormuz.