Iran is closer to finding a way to circumvent the crucial Strait of Hormuz when it comes to oil exports. The Jask oil terminal, officially opened a few years ago, has seen but limited activity so far. However, recent satellite imagery reveals it has partially filled the facility with crude oil in what is being construed as a significant development in Tehran’s oil export strategy.
The importance of Jask has increased as of late as tensions with Israel grow. During periods of unrest, Iran has routinely threatened to shut down the Strait of Hormuz, a vital artery for oil shipments for several Middle Eastern producers. Unfortunately for Iran, it also relies on the Strait for its oil exports—but perhaps its leanings on the Strait is about to lighten up.
Jask could enable Iran to reduce its reliance on this narrow waterway, freeing up options for the country.
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Jask has filled to about half capacity, imagery shows, but the facility’s challenges remain. The terminal was designed to load up to 1 million barrels per day and store 20 million barrels. However, only one of the three planned loading buoys has been installed, limiting its operational capacity. Kharg Island, Iran’s primary oil export hub, has in the past handled three times that volume, maintaining its status as the dominant outlet since the 1960s.
The most recent loading activity at Jask occurred from September 9 to 19, 2024, when the Iranian supertanker Dune loaded approximately 2 million barrels of crude. This marks the first significant loading at Jask since its initial trial runs in 2021, according to TankerTrackers.com, a firm specializing in monitoring Iran’s oil shipments.
The Jask terminal’s partial activity may signal a shift in Iran’s export strategies, aiming to bolster oil flows while mitigating the risks associated with the Strait of Hormuz.
By Julianne Geiger for Oilprice.com
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