Iran Expands Oil Storage Amid Kharg Island Capacity Concerns

Apr 24, 2026

70 min

Apr 24, 2026 06:31

Iran scrambles to store more oil as Kharg Island nears capacity under blockade pressure

## Kharg Island Nears Storage Limit

Iran is taking steps to increase its oil storage capacity as Kharg Island, its primary oil export terminal, approaches its storage limits due to a U.S. blockade. The island, located about 25 kilometers south of the Iranian mainland, handles the majority of the country's crude exports.

## Reactivation of M/T Nasha

To address the storage issue, Iran is reactivating the M/T Nasha, a very large crude carrier that has been inactive for years. This vessel will serve as floating storage to manage the overflow of crude oil that cannot be stored onshore.

## Supply and Demand Challenges

Industry analysts report that Kharg Island has approximately 13 million barrels of spare onshore storage, with daily inflows of 1.0 to 1.1 million barrels. At this rate, the storage could reach full capacity in about two weeks.

## Potential Production Impact

If storage capacity is exceeded, Iran may need to shut down some oil wells, particularly those requiring continuous operation to prevent damage. This situation poses a significant risk to Iran's oil production capabilities.

## Temporary Solutions

While the floating storage provides a temporary solution, it is not a long-term fix. Continued blockades and reduced exports could force Iran to make difficult decisions regarding production cuts or risk damaging its oil fields. The situation at Kharg Island is critical for Iran's economy, highlighting the urgency of finding a sustainable solution.

Read the full story at the source

What you need to know to get Emirates ID?

Leave your details and get a guide as a gift to avoid mistakes

Article contents