U.S. Imposes Blockade on Iranian Ports, Threatening Economic Impact

U.S. Blockade on Iranian Ports

The United States has initiated a blockade on Iranian ports, with American vessels arriving near the Strait of Hormuz. President Donald Trump has issued a stern warning that any Iranian ship approaching will be destroyed immediately. This blockade could result in Iran facing daily losses of approximately $435 million, equivalent to around 40,000 crores, affecting trade significantly. The blockade will apply to all vessels entering and exiting Iranian ports and coastal areas, including the Arabian Gulf and the Gulf of Oman. However, ships heading to non-Iranian ports through the Strait of Hormuz will not be obstructed by the U.S.

According to Miad Maleki, a senior expert at the Foundation for Defense of Democracies (FDD), the economic impact on Iran could be immediate and substantial. In a detailed post on X, he noted that the U.S. maritime blockade in the Strait of Hormuz could lead to daily export losses of about $276 million and import disruptions costing $159 million, totaling an economic loss of around $435 million each day or $13 billion monthly.

Iran's trade heavily relies on the Persian Gulf, with over 90% of its annual trade valued at approximately $109.7 billion passing through this route. The revenue from exports constitutes 80% of this income, with oil and gas accounting for nearly a quarter of the country's GDP. Maleki highlighted that Iran exports about 1.5 million barrels of crude oil daily, generating around $139 million in revenue at high wartime prices. He warned that this export activity would cease immediately due to the blockade, particularly affecting Kharg Island, which handles 92% of crude oil exports.

The blockade will also impact petrochemical exports, with around $54 million in daily exports affected, as these goods are shipped from ports within the blockade zone, including Asaluyeh and Imam Khomeini ports.

Non-oil exports, valued at approximately $88 million daily, will also be impacted, as nearly 90% of goods transit through Gulf ports. Analysts suggest that Iran has limited options outside the Strait of Hormuz. Ports like Jask and Chabahar operate at significantly lower capacities compared to the major Gulf ports that manage most of the country's trade. Iran's oil storage capacity may provide temporary relief, but with an extra capacity of about 20 million barrels and ongoing production, this storage could fill up in roughly 13 days, after which oil wells may need to be shut down.

Maleki cautioned that closing old oil fields could lead to permanent damage. He stated that forced shutdowns could permanently eliminate production capacity of 300,000 to 500,000 barrels daily, resulting in an annual loss of $9 to $15 billion.