Iran reroutes oil flow as loading resumes at Kharg Island terminal

Iran has restarted crude oil loading at Kharg Island's western terminal following a 25-day shutdown, according to maritime intelligence companies. The western terminal, which handles about 90% of Iran's oil exports, was activated on August 12, after VLCC tankers waited offshore since July 11. The eastern terminal and liquefied petroleum gas (LPG) facility remained idle.

TankerTrackers.com reported that a National Iranian Tanker Company VLCC had commenced loading about two million barrels of crude at the Azarpad jetty on August 11, marking the first observed loading at the island since late July. Although Kharg Island continues to export crude oil, LNG exports have dropped due to insufficient gas shipping, resulting in excess gas being burned off at the facility.

Iran is diversifying its oil and cargo transportation by utilizing North Larak anchorage and the Caspian Sea. Russian-to-Iran wet-cargo movements have surged by 2.9 times to 23 shipments within 164 days following the February 28 blockade, while volumes rose from 174,100 barrels to around 437,000 barrels. These developments suggest Iran's maritime strategy is shifting away from dependence on the Strait of Hormuz, opting instead for alternative anchorage and inland-connected routes.