Iran Exports Over 40 Million Barrels of Oil Post-Blockade, Prices Rise

Iran has exported more than 40 million barrels of crude oil since the U.S. removed its naval blockade of Iranian ports, and is now selling oil at prices roughly 20% higher than before the war, parliament speaker and chief negotiator Mohammad Bagher Ghalibaf said Tuesday.

The U.S. and Iran signed a memorandum of understanding on June 17 to end nearly four months of war and reopen the Strait of Hormuz, and set ​up 60 days of negotiations to work out a permanent peace deal. The two sides briefly traded strikes over the weekend after Iran attacked two transiting vessels.

The ceasefire prompted a surge in crude shipments through the vital waterway where traffic had largely ground to a halt during the conflict, sending oil prices sharply lower.

"Since the day the naval blockade was lifted, we have exported more than 40 million barrels of oil," Ghalibaf said in a television interview published on his Telegram channel. Iran had been unable to export a single barrel during the roughly two-month blockade that preceded the accord, he added.

Tanker tracking firm TankerTrackers.com said Wednesday that it estimated Iran had exported 50 million barrels of crude oil since the U.S. lifted its naval blockade on the country's energy exports two weeks ago. The firm uses satellite imagery, shoreside photography, and a real-time automatic identification system to monitor vessel movement.

Brent crude traded near $73 a barrel Wednesday, down almost 40% from the war's peak of $118 in April, as diplomatic progress and expectations of a Gulf supply rebound weigh on prices. Iranian crude sold at a discount of $10 to $15 a barrel below Brent before the war to compensate buyers for sanction risks, according to Gregory Brew, senior analyst at Eurasia Group.

Iran has agreed to let ships transit Hormuz toll-free for 60 days under the MOU, but insisted that it will retain control over the waterway's administration.

"The sovereignty of the Strait of Hormuz lies with Iran and Oman, and traffic in the strait is subject to arrangements determined by Iran," Ghalibaf said. "Iran will not give up its rights in the Strait of Hormuz under any circumstances, and these are our territorial waters."

It remains unclear how the strait will be governed once the 60-day window expires. Vessels have crossed the Strait of Hormuz via a southern corridor along Oman's coast or through Iranian-controlled lanes to the north.