Iran is grappling with a severe oil storage crisis as it turns to ageing tankers near Kharg Island, its main oil export hub, to store crude oil. With onshore storage tanks nearing full capacity, Iran is reportedly loading around one million barrels per day onto these vessels. This situation has arisen due to a US-led naval blockade that has restricted Iranian oil exports, forcing Tehran to improvise. The Strait of Hormuz, a critical passage for global oil trade, has seen a drastic reduction in traffic, with only five ships passing daily compared to the usual 140. Experts warn that if storage capacities are fully utilized, Iran may have to shut down production, risking long-term damage to its oil reservoirs. This crisis also has global implications, as disruptions in Iranian oil supply are contributing to rising oil prices, which have surged above $100 per barrel. Countries like Japan are already seeking alternative crude supplies to mitigate risks. Iran's strategy of using floating storage is a temporary fix, but it raises concerns about the sustainability of its oil sector under ongoing pressure from the blockade.