As of the end of April 2026, Iran is facing an increasingly critical oil storage crisis following the US naval blockade of the Strait of Hormuz.
This situation has caused Iran's oil exports to plummet from around 2.1 million to just 567,000 barrels per day.
Oil production that is difficult to stop is forcing Tehran to use extraordinary storage methods to accommodate the excess supply.
These include the use of old and obsolete tanks in oil hubs such as Ahvaz and Asaluyeh, in addition to reactivating old tankers as floating storage on Kharg Island.
Onshore storage capacity is now approaching its maximum limit, estimated at between 86 and 95 million barrels. Analysts expect Iran to run out of storage space completely as early as mid-May if the sanctions continue.
At the same time, technical risks are also increasing as shutting down oil wells is not an easy option.
The geological structure of Iran's carbonate reservoirs could suffer permanent damage if operations are forcibly stopped, thus increasing recovery costs in the billions.
As an alternative measure, Iran is reportedly evaluating options for shipping crude oil via land routes including rail to China to reduce dependence on sea routes which are currently affected.
