Iran's grip on Strait of Hormuz weakens as country exports 40 million barrels following end of U.S. blockade

Iran's grip on the Strait of Hormuz has shifted following a June 17, 2026, memorandum of understanding with the United States that ended a four-month war and lifted a crippling naval blockade. Since the blockade was removed, Iran has exported over 40 million barrels of crude oil, selling at a 20% premium. The resumption of flows has eased global energy pressures, sending Brent crude down 40% from its April peak of $118 to near $73 a barrel, despite lingering geopolitical tensions.

Strait of Hormuz oil resumption

• ▪Iran has exported more than 40 million barrels of crude oil since the United States lifted its naval blockade of Iranian ports
• ▪The United States and Iran signed a memorandum of understanding on June 17, 2026, to end nearly four months of war and reopen the Strait of Hormuz
• ▪Iran is selling crude oil at prices roughly 20% higher than before the war, following the end of the United States naval blockade

U.S. military overwatch operations

• ▪President Donald Trump claimed a secret overwatch mission escorted more than 200 vessels and got over 100 million barrels of crude oil out of the region
• ▪A United States Army AH-64 Apache attack helicopter crashed off Oman after allegedly being hit by an Iranian drone during the overwatch operation
• ▪United States forces conducted a limited overwatch operation using autonomous vehicles, aircraft, and drone escorts to help ships through the southern part of the Strait of Hormuz near Oman

American blockade on Iranian exports

• ▪A United States military attack on an oil vessel on June 10, 2026, killed three Indian sailors during the blockade of Iranian exports
• ▪The United States military blockade of Iran included shooting at and stopping ships associated with Iran's sanctioned oil trade
• ▪Iran was unable to export a single barrel of crude oil during the approximately two-month United States naval blockade preceding the June 17, 2026, accord

Iranian oil storage crisis

• ▪Iran has been forced to slow or stop oil production at some older wells, risking permanent damage to those wells
• ▪Wood Mackenzie estimates that Iran's oil output fell by 800,000 barrels a day during the United States blockade
• ▪Iran's onshore crude oil storage reached 69 million barrels during the blockade, its highest level since 2020

Global energy market impact

• ▪China's seaborne crude oil imports dropped to 6.8 million barrels a day in May 2026, the lowest level since October 2016
• ▪Brent crude prices fell to near $73 a barrel, down almost 40% from the war's peak of $118 in April 2026