Iranian oil exports to Asia plunged 93%, from 29.7 million barrels in April 2026 to roughly 2.01 million barrels in May, their lowest level in six years. Average daily exports fell to 209,000 barrels per day from 1.34 million bpd in April and nearly 1.9 million bpd in March. A US naval blockade of the Strait of Hormuz, a key oil transit route through which roughly a fifth of the world’s oil supply typically passes, has disrupted shipments and sharply increased freight costs. Benchmark VLCC (very large crude carrier) rates from the Middle East to China reached Worldscale W419 in early March 2026, equivalent to approximately $423,000 per day. The United States sanctioned multiple Chinese and Hong Kong shipping companies in late July over their role in transporting Iranian oil and was preparing further sanctions by mid-August. Oil prices fell by more than $1 per barrel on August 24 as traders anticipated the announcement. China has historically been Iran’s largest crude buyer, using discounted cargoes and networks of smaller shipping companies and intermediaries to obscure their origin. Further restrictions on compliant tankers could push freight rates back toward March levels, while Iran’s 209,000-bpd export average would leave the country with only a fraction of the revenue needed to fund government operations and subsidize domestic fuel consumption.