The US naval blockade and tough sanctions have left Iran’s oil sector in a dire situation. Experts predict that Tehran will be forced to shut down many of its wells within two weeks due to a lack of export routes and overstocked storage facilities.
With Iran’s aging infrastructure, shutting down wells could lead to their eventual collapse. Experts say it would be impossible or too expensive to restart wells that have not been properly maintained for decades.
According to Kpler and Wood Mackenzie, Iran’s storage capacity will run out within 2-3 weeks. Tehran has already begun to reduce production rates to avoid a complete system shutdown.
The sharp decline in oil revenues is depriving the country of foreign currency, which is exacerbating the rial’s devaluation and inflation. US Treasury Secretary Scott Besant predicts that Iran will soon face a domestic fuel shortage.
While Iran is trying to resist the blockade, the US side continues to detain tankers carrying Iranian oil in the open sea.
Analysts warn that if production is halted, it could trigger mass strikes by oil workers and new domestic unrest, as happened during the 1979 revolution.
