ByJERUSALEM POST STAFF

JULY 19, 2026 15:39

Iran sent nearly 70 million barrels of oil valued at 5 billion to 6 billion dollars during a month-long pause in the US blockade. This allowed Tehran to rebuild financial reserves ahead of renewed restrictions, as noted in a Wall Street Journal report released on Sunday.

From late June onward, roughly 20 Iranian tankers reached waters off Malaysia's eastern shoreline. The Diona arrived early, followed by the Hero II and Sonia 1. The Stream docked on July 13.

Experts assess that China serves as the final destination for these cargoes, given its role as Iran's main buyer of restricted crude.

Data from United Against Nuclear Iran and oil industry analysts showed Tehran moved about 70 million barrels between mid-June and mid-July.

Around 50 million barrels departed Iran in the latter half of June, matching roughly one month of pre-conflict exports to China. The shipments came after a temporary US-Iran deal on June 17 that lifted the blockade and permitted tankers from Chabahar to head toward Asia. Several vessels had already begun transiting the Strait of Hormuz before the pause ended.

Renewed clashes shut Iran export route

The pause unraveled after Iran struck commercial vessels in the Gulf on July 6 and 7. US forces launched multiple strikes on missile sites, coastal defenses, naval units, communications hubs and other military targets tied to shipping threats.

President Donald Trump then directed Central Command to reinstate the blockade on vessels bound for or leaving Iranian ports starting July 14. CENTCOM reported that its earlier effort had redirected over 140 ships and disabled nine non-compliant vessels.

Following the blockade restoration, US aircraft hit coastal defenses and cruise missile facilities on Greater Tunb Island. Additional strikes occurred near Ahvaz, Bandar Abbas, Konarak, Sirik and Qeshm, though reports on targets and impact differed.

Iran replied with missile and drone launches aimed at US bases and host nations including Bahrain, Kuwait and Jordan. The fighting cut commercial traffic through the strait, with just six vessels passing on July 12, the lowest count in five weeks.

The oil moved during the truce headed to the Eastern Outer Port Limits, a zone beyond Malaysian waters roughly midway between Iran and China.

There, tankers transfer Iranian crude via large hoses to other vessels at sea. The receiving ships typically proceed to independent Chinese teapot refineries that buy the oil at reduced prices.

Such transfers hide the oil's source and complicate US efforts to track sanctioned shipments, ships and middlemen.

Tehran may gain billions from oil sales in coming months

The rise in Iranian tankers reaching Asian waters in July suggests Tehran could collect billions in oil income over the next several months, even with the restored blockade limiting further exports.

Charlie Brown, a Singapore-based analyst at United Against Nuclear Iran, told the Journal that keeping the blockade active would likely have created pressure around this time.

Brown noted that Iran rapidly increased oil movements once the blockade lifted, creating another substantial buffer.

Oil already en route or transferred to China can still produce revenue despite the renewed blockade, softening the short-term effect of US measures.

Jonathan Panikoff of the Atlantic Council observed that Iran's economy faces its toughest conditions since the revolution, making each dollar of income critical.

Panikoff added that Tehran would likely direct the funds toward its main priorities, especially its ongoing standoff with the United States.