By Julianne Geiger – May 07, 2026, 2:00 PM CDT
Iran has cut oil production by roughly 400,000 barrels per day (bpd) as exports stall and storage runs out, according to U.S. Energy Secretary Chris Wright.
“It looks like they’ve likely already cut back their production, maybe by 400,000 barrels a day,” Wright said in an interview on Thursday. “They’ll likely continue to ramp down their production as their storage fills and their inability to export oil.”
The cuts come as a U.S. naval blockade has sharply reduced Iran’s ability to move crude out of the Gulf. Tankers are backing up. Storage onshore is filling. The system is starting to hit physical limits.
Shipping data shows just a handful of vessels carrying Iranian crude left the Gulf of Oman between April 13 and 25, according to Vortexa. That is down more than 80% from March, when Iran exported 23.4 million barrels over a comparable period, based on LSEG data.
Barrels that can’t leave have nowhere to go. Once storage fills, production has to come down.
That dynamic is already showing up in the market. Iran had been one of the few producers still managing to push volumes despite sanctions pressure. With those flows now constrained, the global supply picture tightens further at a time when inventories are already being drawn down.
Wright framed the production cuts as added leverage.
“Hopefully, that’s an additional incentive for Iran to get to the end that everyone knows we’re going to get to,” he said, referring to negotiations over Iran’s nuclear program and the reopening of the Strait of Hormuz.
For now, the mechanics are doing the work. Less export capacity means less production. And unless flows resume, those cuts are likely to deepen.
By Julianne Geiger for Oilprice.com
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