By Giulia Petroni
Iran's crude production slumped more than 18% last month as U.S. forces continue to block shipments to and from the country's ports, choking off exports and raising the risk that Tehran could soon run out of places to store its crude.
Output fell by 546,000 barrels a day to 2.33 million barrels a day, according to data from the Organization of the Petroleum Exporting Countries.
Tensions in the region escalated this week, with President Trump threatening to strike Iran again Thursday and saying the U.S. "in the not too distant future" would be taking Kharg Island, Tehran's main oil export hub.
Trump's threat came after a fresh wave of strikes between the two sides as negotiations to end the war and gradually reopen the Strait of Hormuz remain stalled over Iran's nuclear program and financial relief.
The U.S. naval blockade has also dealt a severe blow to Iran's oil-export revenue.
Iranian seaborne crude oil exports dropped to 260,000 barrels a day last month, marking a steep drop of 1.2 million barrels a day from April's levels and hitting the lowest monthly level in six years, according to Kpler. A complete halt in loadings at Kharg Island between May 6 and May 22 reduced exports from the terminal to 176,000 barrels a day from 1.34 million barrels a day in April.
In afternoon European trading on Thursday, Brent crude was trading around $93 a barrel, while West Texas Intermediate hovered near $90 a barrel.
Despite prolonged supply disruptions and depleting inventories, both benchmarks remain well below March's levels. The release of emergency oil reserves, softer global demand, lower crude imports from China, stronger U.S. exports and pipeline rerouting from Saudi Arabia and the U.A.E. have all helped ease pressure on the market and mitigate the supply shortfall.
In its latest monthly report, OPEC cut its global oil-demand growth forecast to 970,000 barrels a day, from 1.17 million previously. Next year's demand growth is seen at 1.73 million barrels a day, up from a previous estimate of 1.54 million.
The cartel's demand outlook stands in contrast to those of other forecasters, which anticipate a much bigger hit to consumption from the Iran war. The U.S. Energy Information Administration expects demand to decline by 1.1 million barrels a day, while the International Energy Agency projects a contraction of 420,000 barrels a day this year.
Production from the cartel members fell by 177,000 barrels a day to 18.83 million barrels a day in May, while output from the broader OPEC+ alliance declined by 185,000 barrels a day to 33.13 million barrels a day.
United Arab Emirates--whose output remains included in the data despite its departure from the cartel last month--and Saudi Arabia raised production in May. The kingdom has ramped up use of its East-West pipeline to the Red Sea port of Yanbu, while the U.A.E. has rerouted some of its oil exports pipeline via a pipeline to Fujairah, a port on the Gulf of Oman outside the strait.
Despite the closure of Hormuz--a critical artery through which a fifth of the world's oil used to pass and a vital pathway for many Gulf producers to ferry crude to Asian buyers--key nations among OPEC and its allies agreed to raise oil output again in July in a move widely seen as symbolic.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
June 11, 2026 10:01 ET (14:01 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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