Bloomberg reports that, amid the naval blockade, Iran is nearing the limits of its oil storage capacity and is expected to cut production as early as mid-May. According to a report by Kpler, Iran has only 12 to 22 days left before it will be forced to reduce output by approximately 1.5 million barrels per day.
The report adds that Iran has already reduced oil loadings onto tankers by about 70% due to the blockade. However, the economic impact of the move is expected to be felt only in three to four months.