Iran is rapidly running out of space to store its crude oil as the Middle East conflict continues to disrupt global energy markets. According to energy analytics firm Kpler, the country may have only 12 to 22 days of unused storage capacity remaining. If storage fills up, Iran could be forced to cut production by as much as 1.5 million barrels per day by mid-May, adding further strain to an already pressured oil sector.

Exports have fallen sharply since early April, when the President of the United States ordered a naval blockade of Iranian ports. Shipments have dropped to about 567,000 barrels per day, down from 1.85 million barrels per day in March. Tanker loadings have declined by nearly 70 percent, and there is little evidence that vessels are successfully bypassing the blockade.

Despite the steep decline in exports, the financial impact on Iran may not be immediate. Most of its crude shipments take roughly two months to reach China, and payments can take an additional two months to settle. As a result, the full revenue shock may only become clear three to four months after the initial disruption, raising concerns that a deeper financial crisis could still lie ahead.