Iran restarts Kharg loading as export routes shift

Iran has restarted crude loading at Kharg Island's western terminal after a 25-day hiatus, indicating a cautious resumption at the country's principal oil-export hub as Tehran broadens alternative maritime and land-linked pathways to mitigate exposure to the Strait of Hormuz blockade. Satellite images revealed a massive crude carrier, a very large crude carrier (VLCC), berthed at the western terminal on August 12, its first visit since July 18.

The 333-meter-long vessel had been in the Kharg waiting area since July 11 before moving to the berth, where it continued loading on August 13. Meanwhile, Kharg's eastern oil terminal and liquefied petroleum gas terminal remained idled. This selective resumption, rather than a full return to normal operations, highlights that Kharg accounts for about nine-tenths of Iran's crude exports and plays a crucial role in generating foreign currency.

All three terminals had been vacant on August 11, with no departures from the island between July 31 and August 11. The shutdown ensued following the tightening of the U.S. naval blockade in mid-July following an interim deal intended to reopen the Strait of Hormuz, which broke down. This disruption curtailed Iran's ability to bring empty tankers into the Gulf and dispatch loaded vessels from Kharg, compelling producers to cut output and manage storage more cautiously.

Tehran is simultaneously restructuring trade routes, with maritime traffic between Russia and Iran through the Caspian Sea surging since the blockade began on February 28. Russia-to-Iran wet cargo movements surged from eight shipments in the prior comparable period to 23, and volumes escalated from approximately 174,100 barrels to roughly 437,000 barrels.

Iran aims to shift over 30 percent of imports via routes involving Russia and the Caspian, diminishing reliance on southern maritime gateways. Discussions between Tehran and Moscow revolve around a logistics roadmap encompassing Caspian shipping, land transport, and the Rasht-Astara railway, a missing piece in the International North-South Transport Corridor, which could bolster freight connections between Russia and Iran.

Meanwhile, activity around Larak Island near the Strait of Hormuz suggests another facet of Tehran's adaptation. On August 12, the North Larak anchorage held 35 tanker and cargo vessels, up from 28 two days earlier. Roughly three-quarters of these vessels were operating without standard automatic identification system transmissions, while several were under sanctions.

Such concentrations permit tankers to remain near potential transit routes while minimizing their electronic visibility. Nonetheless, Hormuz traffic remains far below pre-war levels. As of August 10, only six vessels were recorded passing through the waterway, compared to an average of around 11 over a 10-day span and the typical 130 to 140 ships seen before the conflict.

The blockade has impacted producers across the Gulf, prompting companies and governments to hasten pipeline, transshipment, and alternative loading operations outside the strait. Oil markets remain concerned about the possibility of prolonged disruption. Brent crude surged to $88.52 a barrel on August 14, while U.S. West Texas Intermediate climbed to $82.40 due to tanker attacks and the lack of progress towards reopening Hormuz, fueling apprehensions over supply.

The International Energy Agency has revised its 2026 global supply forecast downward, projecting production at about 102 million barrels per day and a supply deficit of roughly 1.27 million barrels per day. Kharg remains critical due to Iran's limited alternatives capable of handling crude volumes at the same scale. The island's deep-water facilities can accommodate large tankers that cannot easily navigate much of Iran's shallower coastline.

Its storage capacity is estimated at around 30 million barrels, and traditionally, most exported crude from Kharg heads towards Asian buyers, particularly China. The reopening of the western berth provides Tehran with added operational flexibility, but its significance hinges on whether the VLCC can depart Kharg fully loaded and if additional vessels are permitted to berth.

The eastern and LPG terminals remained empty through August 13, leaving Iran operating well below normal loading capacity despite accumulating vessels at nearby anchorages.