Iran’s offshore oil reserves near Malaysia and Singapore have reportedly been exhausted, cutting off a crucial source of revenue as the American naval blockade prevents Tehran from replenishing supplies destined for China.

According to energy research firm Kpler, the floating stockpiles had emptied by mid-October. The reserves, held aboard dozens of tankers off the Asian coast, had allowed Iran to continue supplying Chinese refineries and collecting billions of dollars during much of the war.

“There is no more oil to unload in China,” said Homayoun Falakshahi, Kpler’s head of crude oil analysis.

The loss of those shipments is intensifying pressure on an Iranian economy already struggling with soaring inflation and a currency that has lost approximately one-third of its value against the dollar since early July.

U.S. Central Command said the blockade has deprived Tehran of at least $25 billion in revenue. CENTCOM commander Adm. Brad Cooper said American operations had imposed “devastating costs” on Iran’s security apparatus, undermining its ability to replace destroyed weapons and production facilities.

Oil sales account for approximately 30% to 40% of Iranian government revenue and represent the country’s principal source of foreign currency.

The depletion of the floating reserves followed a brief opportunity for Tehran to rebuild them. After Washington temporarily lifted the blockade in mid-June amid negotiations, Iran replenished the stockpiles to approximately 90 million barrels.

Once the blockade resumed in mid-July, the reserves declined rapidly. By October 5, fewer than one million barrels remained. Kpler says those remaining supplies have since been exhausted.

Other tanker-tracking firms also reported that Iranian exports had fallen close to zero, prompting Chinese refiners to seek alternative supplies from Brazil and countries in West Africa.

The offshore stockpiles were part of an elaborate sanctions-evasion network. Iranian crude was transferred between tankers at sea to conceal its origin and complicate American enforcement efforts.

Tehran is now attempting to move oil by truck through neighboring countries, but analysts say overland shipments cannot come close to replacing the lost maritime trade.

The financial impact may take additional time to become fully apparent. Payments from Chinese buyers typically arrive roughly two months after a sale, meaning Iran could continue receiving some revenue from earlier shipments in the coming weeks.

Meanwhile, other Middle Eastern oil exports have reportedly continued flowing and recently exceeded prewar levels, supported by American protection of shipping through the Strait of Hormuz.

Iranian officials have publicly rejected suggestions that the economy is approaching collapse.

Speaking last week at an International Monetary Fund gathering in Bangkok, Central Bank Governor Abdolnaser Hemmati insisted that “the Iranian economy has demonstrated very good resilience,” dismissing claims of an economic collapse as “nothing more than an illusion.”

(YWN World Headquarters – NYC)