Iran's oil production has come to a standstill, US Treasury Secretary Scott Bessent claimed on Thursday.
In an interview with CNBC, he said there "have been no loadings in the past three days" at Kharg Island, a key hub for Iranian oil exports.
"We believe their storage is full. None of the ships are getting out, none are coming in, so they're not able to store oil on the water," Bessent said.
The United States has been blockading Iranian ports in response to Tehran's blockade of the Strait of Hormuz, a narrow waterway that connects the Gulf with the open sea that is crucial for global oil trade.
If Iran is unable to sell its oil, storage facilities will fill up quickly, and if oil wells have to be shut down as a result, they could suffer long-term damage.
Citing satellite images, Bessent said that Iran had begun "to start shutting down their production," a development he attributed to the US blockade.
Following the US-Israeli war on Iran launched on February 28 and the fragile ceasefire implemented in early April, Iran has seen a historic surge in inflation.
The rial has fallen to a record low, while consumer prices have almost doubled. Observers attribute this development primarily to the US blockade of vessels trying to reach or depart from Iranian ports, which has severely restricted Iranian oil exports – the country’s main source of income.
