Trump said his blockade would cause Iran's oil industry to 'explode' this week. Why that won't happen
Trump claims blockade will cause Iran's oil industry to 'explode', but analysis suggests it won't happen.
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trump said sunday that iran's oil industry is days from "exploding" because crude is bottled up by the us naval blockade. but analysts say that's not realistic.
iran has at least 26 days before its storage tanks fill and production cuts become unavoidable, according to rapidan energy. a more generous estimate gives them 76 days of storage. tehran is losing $500 million per day from the blockade, per a white house official. oil loadings at iranian ports collapsed from 2.1 million barrels per day before the blockade to 567,000 bpd after, kpler found.
experts say iran can ramp down oilfields in an orderly way to avoid permanent damage. the bigger question is when iran runs out of revenue — kpler estimates iran has 120 million barrels of oil on tankers east of the blockade zone, worth about two months of revenue. if the blockade holds for two more months, iran's oil revenues could crash to zero.
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