Iran is drowning in unsold oil due to the conflict in the region. According to experts, Tehran may only have a few weeks, maybe two, before it has to shut down its facilities.
Published on 29/04/2026 08:52 Reading time: 1 min
A ship spotted off the coast of Sharjah (United Arab Emirates) in the Strait of Hormuz on April 13, 2026. (AFP)
As the price of oil continues to soar and the United States imposes a blockade on Iran’s ports in the Strait of Hormuz, Tehran is facing serious storage problems for its production. The process to slow down production or halt oil fields is very complex. As a result, even with reducing production, Tehran is flooded with unsold oil that the country must store in makeshift reservoirs. The entire economy of the country is at a standstill.
The use of abandoned sites, makeshift containers, attempts to export by rail to China… Tehran is trying everything to delay the halt of its oil ventures. “Once the dedicated storage facilities, the buffer storage, are full, and the pipelines themselves are full, the obligation is to stop production,” explains Patrice Geoffron, an economy professor at Paris-Dauphine, and energy expert.
A highly complicated process that can damage oil fields due to pressure and geology issues. Tehran is exploring makeshift solutions. “The most significant point in this regard, based on the information available, has been reusing an old supertanker,” continues Patrice Geoffron. “We understand that it was no longer active for transporting oil and is now acting as a floating barge to avoid congestion.”
“This congestion can only result in a halt to production, which would have a massive impact on the Iranian economy and possibly on the regime’s sustainability,” concludes Patrice Geoffron.
Before the war, Iran exported an average of two million barrels per day, now it’s only 500,000. According to specialists, Tehran may only have a few weeks, maybe two, before it has to shut down its facilities.
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