Iran Has Just 12–22 Days Of Oil Storage Left, Output Cuts Likely: Report

Last Updated:April 28, 2026, 12:34 IST

Iran is staring at a rapidly shrinking oil storage window, with capacity likely to last just 12 to 22 days, raising the risk of deeper production cuts in the coming weeks.

Iran is running out of space to store its crude oil, a development that could soon force deeper production cuts in what was once OPEC’s second-largest producer, according to analytics firm Kpler.

In a report released Monday, Kpler said Iran’s remaining storage capacity may last only 12 to 22 days. If the situation persists, the country could be compelled to slash output by an additional 1.5 million barrels per day by mid-May. This comes after Goldman Sachs estimated last week that Iran has already reduced production by nearly 2.5 million barrels a day.

The disruption is not limited to Iran. Regional producers, including Saudi Arabia, Iraq, Kuwait and the United Arab Emirates, have also scaled back output since hostilities escalated in late February.

Will Falling Output Hurt Iran’s Finances?

Despite the mounting storage crunch, the financial impact on Tehran may not be immediate. Since early April, Iranian crude exports have dropped sharply after US President Donald Trump ordered a naval blockade of Iranian ports.

With traffic through the Strait of Hormuz thinning, shipments have fallen to around 567,000 barrels per day, according to Kpler. For context, exports had averaged about 1.85 million barrels per day in March.

Even so, Kpler suggests revenues may hold steady for the next three to four months. Iranian oil shipments typically take up to two months to reach destinations such as China, often via indirect or opaque channels designed to bypass sanctions. Payment cycles can stretch for another two months, delaying the financial hit.

The blockade, however, appears to be tightening. Kpler notes that no tanker has successfully slipped past US naval enforcement in the Hormuz region so far, and crude loadings have plunged by roughly 70% since restrictions came into effect.

The current disruption comes amid a broader geopolitical escalation involving the U.S., Israel and Iran, which has put one of the world’s most critical energy corridors under strain. The Strait of Hormuz handles a significant share of global oil trade, making any restriction there a key risk for energy markets.

News world Iran Has Just 12–22 Days Of Oil Storage Left, Output Cuts Likely: Report

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