U.S. Blockade of Strait of Hormuz Cuts Iran Oil Exports by 75 Percent

U.S. blockade of the Strait of Hormuz, imposed last month, has reduced Iranian oil exports by approximately 75 percent. 1 million barrels a day. The reduction has cost the Iranian regime roughly $159 million per day, or $13 billion per month. Energy exports account for 15 to 20 percent of Iran's total GDP.

The country is now producing more oil than it can export and has begun reactivating old storage facilities and using vacant tankers. Reports indicate Iran has also started pumping oil into the sea to keep wells operational.

Treasury Secretary Scott Bessent stated in a recent CNBC interview that the Iranian regime has effectively run out of storage capacity. The White House expects the blockade to require additional time to achieve its goals. Officials are considering renewed military action to remove excess storage, disrupt infrastructure, and target hardline political elements.

President Trump faces growing political discontent in Congress and concerns from his base about midterm election prospects. Both parties recognize that leaving Iran in control of the Strait of Hormuz poses risks to global energy markets. The administration is expected to continue applying pressure while monitoring the blockade's effects.