- Iran faces a crude oil storage crunch as Kharg Island nears capacity limits
- Inflows of 1 to 1.1 million barrels daily strain storage with two weeks left
- Tehran reactivated old tanker Nasha for floating storage amid export restrictions
Iran is struggling to manage a growing crude surplus as export restrictions choke its oil shipments, forcing Tehran to revive an ageing tanker to store excess oil at sea.
According to a report by India Today, Iran's key oil hub at Kharg Island—which accounts for over 90% of the country's crude production and can store up to 30 million barrels—is fast approaching its storage limits.
With inflows estimated at 1 to 1.1 million barrels per day and only about 13 million barrels of capacity left, analysts warn storage could be exhausted within nearly two weeks.
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To ease the pressure, Tehran has reactivated the decades-old tanker Nasha, which had been lying idle, and is now deploying it as floating storage.
The move underscores the strain on Iran's oil infrastructure as a result of restrictions in the Strait of Hormuz.
Satellite imagery cited by maritime tracking platform TankerTrackers showed that as of April 16, at least three tankers had loaded roughly five million barrels of crude from Kharg Island.
Storage Crunch May Force Tough Choices
Experts say Iran is nearing a critical juncture. If storage capacity is fully utilised, Tehran may be left with limited options—either cut production or risk long-term damage to its oil fields.
US Treasury Secretary Scott Bessent had earlier cautioned that Iran could soon run out of storage space for crude.
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Shutting oil wells, however, is not a simple solution. Oil extraction relies on maintaining pressure within underground reservoirs.
Sudden shutdowns can disrupt this balance, allowing water to seep into oil-bearing rock formations—potentially trapping crude permanently and reducing future recovery.
Stop-Gap Measure, Not a Solution
The redeployment of Nasha is widely seen as a temporary workaround rather than a lasting fix.
While it helps delay an immediate crisis, continued export disruptions could soon force Iran into deeper production cuts or risk irreversible damage to its upstream assets.
With Kharg Island serving as Iran's primary export gateway, any disruption there carries broader economic implications. For now, reviving old infrastructure suggests Tehran is attempting to buy time as pressure mounts on its oil sector.
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