US Treasury Secretary says Iran oil industry "creaking" under blockade; projects $170mn daily loss

Washington, DC: US Treasury Secretary Scott Bessent has stated that Kharg Island, the primary oil export terminal for Iran, is reaching its maximum storage limits. In a social media post, Bessent suggested that this saturation could compel Tehran to scale back its petroleum output, potentially resulting in daily revenue deficits of up to USD 170 million and inflicting lasting harm on the nation's energy infrastructure.

Detailing the broader economic strategy, Bessent noted that the Treasury Department is intensifying financial restrictions through "Operation Fury." This initiative specifically targets Tehran's "international shadow banking infrastructure, access to crypto, shadow fleet, weapons procurement networks, funding for terrorist proxies in the region, and independent Chinese 'teapot' refineries that support Iran's oil trade."

According to Bessent, these coordinated measures are designed to choke off tens of billions of revenue used to facilitate global terrorism. He further asserted that Iran's oil industry is "creaking" under the weight of an ongoing US naval blockade, forecasting that the country's capacity to maintain oil production "will soon collapse."

These observations coincide with high-level diplomatic remarks made at a White House state dinner. Addressing Britain's King Charles III and other dignitaries, President Donald Trump declared that Iran has been "militarily defeated," marking his first public assessment of the conflict during the royal visit.

"We have militarily defeated that particular opponent," President Trump stated. Emphasising a unified stance with the British monarch, he added, "Charles agrees with me even more than I do -- we're never going to let that opponent have a nuclear weapon."

Parallel to these public statements, a report by The Wall Street Journal indicates that President Trump has directed his aides to prepare for a prolonged blockade of the Islamic Republic. Officials stated this strategy is intended to heighten the squeeze on Iranian financial resources by severely restricting maritime traffic to and from its ports, ultimately aiming to extract concessions regarding Tehran's nuclear programme.