Iran restarts Kharg loading as export routes shift

Iran has resumed crude loading at Kharg Island’s western terminal after a 25-day interruption, signalling a cautious restart at its main oil-export hub while Tehran expands alternative maritime and land-linked routes to reduce its exposure to the Strait of Hormuz blockade.

Satellite imagery showed a very large crude carrier, or VLCC, berthed at the western terminal on August 12, the first vessel there since July 18. The tanker, about 333 metres long, had remained in the Kharg waiting area since July 11 before moving to the berth. It was still loading early on August 13, while Kharg’s eastern oil terminal and liquefied petroleum gas terminal remained idle.

The movement represents a selective restoration rather than a return to normal operations. Kharg accounts for roughly nine out of every 10 barrels of crude exported by Iran and is central to the country’s ability to generate foreign currency. All three terminals had been empty on August 11, and no departures from the island were recorded between July 31 and August 11.

The shutdown followed the tightening of the US naval blockade in mid-July after an interim arrangement aimed at reopening the Strait of Hormuz broke down. The restrictions sharply reduced Iran’s ability to move empty tankers into the Gulf and dispatch loaded vessels from Kharg, forcing producers to curtail output and manage storage more carefully.

The restart comes as Tehran works on a broader restructuring of trade routes. Maritime traffic between Russia and Iran through the Caspian Sea has expanded substantially since the escalation of the blockade on February 28. Russia-to-Iran wet cargo movements rose from eight shipments in the preceding comparable period to 23, while volumes increased from about 174,100 barrels to roughly 437,000 barrels.

Iran has also said it intends to shift more than 30 per cent of imports towards routes involving Russia and the Caspian, reducing dependence on southern maritime gateways. Tehran and Moscow have been discussing a logistics roadmap covering Caspian shipping, land transport and the Rasht-Astara railway, a missing link in the International North-South Transport Corridor that could strengthen freight connections between Russia and Iran.

Activity around Larak Island near the Strait of Hormuz points to another element of Tehran’s adaptation. The North Larak anchorage contained 35 tanker and cargo vessels on August 12, compared with 28 two days earlier. Around three-quarters were operating without normal automatic identification system transmissions, while several vessels were under sanctions. Such concentrations allow tankers to remain positioned close to potential transit routes while reducing their electronic visibility.

Traffic through Hormuz nevertheless remains drastically below pre-war levels. Only six vessels were recorded passing through the waterway on August 10, compared with a 10-day average of around 11 and the 130 to 140 ships typically seen before the conflict. The disruption has affected producers across the Gulf, prompting companies and governments to accelerate pipeline, transshipment and alternative loading arrangements outside the strait.

Oil markets continue to price in the risk of prolonged disruption. Brent crude climbed to $88.52 a barrel on August 14 and US West Texas Intermediate reached $82.40 as tanker attacks and the lack of progress towards reopening Hormuz strengthened concerns over supply. The International Energy Agency has cut its 2026 global supply forecast, projecting production at about 102 million barrels per day and a supply deficit of roughly 1.27 million barrels per day.

Kharg remains particularly important because Iran has limited alternatives capable of handling crude volumes on the same scale. The island’s deep-water facilities can accommodate large tankers that cannot easily use much of Iran’s shallower coastline. Its storage capacity is estimated at around 30 million barrels, and the terminal traditionally sends most of its exported crude towards Asian buyers, particularly China.

The western berth’s reopening therefore gives Tehran additional operational flexibility, but its significance will depend on whether the VLCC can leave Kharg fully laden and whether further vessels are allowed to berth. The eastern and LPG terminals remained empty through August 13, leaving Iran well below normal loading capacity even as vessels accumulated at nearby anchorages.