Iran is reportedly taking emergency steps to expand crude oil storage capacity at its key export hub, Kharg Island, as the facility comes under growing pressure amid ongoing restrictions on exports linked to the US blockade on Iranian ports.
According to maritime analysts, Iran has reactivated a 30-year-old very large crude carrier (VLCC), the M/T Nasha, which had been anchored unused for years. The vessel is now being repositioned as floating storage to help absorb excess crude that cannot be moved out through regular export channels.
Industry think tank Tanker Trackers said the situation at Kharg Island is being driven by a growing mismatch between crude inflows and limited storage capacity.
Analysts estimate that around 13 million barrels of onshore storage space remain available at the terminal, while crude inflows are currently running at approximately 1.0 to 1.1 million barrels per day.
At this rate, experts warn that available storage could be fully occupied within 12 to 13 days, potentially reaching saturation by late April if current conditions continue.
The development is significant as full storage capacity would force Iran to either reduce or temporarily shut-in oil production, particularly in fields that rely on continuous water injection systems. Such shutdowns could risk long-term damage to production infrastructure.
Despite ongoing geopolitical tensions and reported strikes affecting the region in recent weeks, Iran has continued loading crude at Kharg Island, keeping the export terminal operational under difficult conditions.
The deployment of the Nasha reflects Tehran’s attempt to manage the growing logistical pressure by creating temporary floating storage. However, analysts say this is only a short-term solution and not a sustainable alternative to full export capacity.
If export restrictions persist and storage continues to fill, Iran may face difficult choices between cutting production or risking operational damage to its upstream oil fields. For now, officials appear to be using every available option to delay a potential storage crisis at the country’s most important crude export gateway.
