Here’s a concise, fundamentals-driven overview of Iran’s oil production, infrastructure, export flows, and critical assets as of early 2026:
1. Historical & Current Oil Production
Current crude oil production: ~3.2–3.3 million bbl/d (Nov–Dec 2025, OPEC/Trading Economics)
Total liquids (incl. condensate/NGLs): ~4.7 million bbl/d (IEA, 2024)
Peak production: ~6 million bbl/d (1970s)
Recent trend: Production rebounded post-2021 as sanctions enforcement loosened, but remains below pre-2018 levels due to sanctions, aging fields, and limited foreign investment.
Year | Crude Oil Production (mmbbl/d) | Crude Exports (mmbbl/d) |
|---|---|---|
2017 | ~3.8–3.9 | ~2.1–2.5 |
2020 | ~2.0 | <0.5 |
2024–2025 | ~3.2–3.3 | 1.5–1.8 |
2. Main Producing Regions & Physical Network
Southwest Iran (Khuzestan Province): Core onshore oil fields (Ahvaz, Gachsaran, Marun, Agha Jari, Bibi Hakimeh, Karanj)
West Karun Cluster: Azadegan, Yadavaran, Yaran (border with Iraq; significant growth potential)
Offshore: Abuzar, Foroozan, Doroud, Salman (Persian Gulf)
Key refineries: Abadan, Tehran, Isfahan, Bandar Abbas, Arak, Tabriz
Main export terminal: Kharg Island (handles ~90% of crude exports, ~1.5 mmbbl/d)
Other terminals: Lavan, Sirri (offshore), Jask (pipeline operational but limited capacity), Neka (Caspian, swaps)
Pipelines: Dense network connecting fields to refineries and export terminals; new Goreh–Jask pipeline allows limited bypass of Strait of Hormuz
Image: Map of Iran’s oil fields, pipelines, and export infrastructure
3. Major Importers & Export Grades
Main importer: China (especially independent “teapot” refineries in Shandong); >90% of Iranian crude exports
Other buyers: Syria, UAE, Venezuela (smaller, often barter or swap deals)
Export grades:
Iran Heavy: Medium-heavy, high sulfur (29–31° API, ~2% S)
Iran Light: Medium-light, lower sulfur (32–34° API, ~1.5% S)
Foroozan Blend: Offshore, similar to Iran Heavy
Condensate: From South Pars, exported via Assaluyeh
Comparable grades:
Iran Heavy: Similar to Saudi Arab Medium/Heavy, Iraq Basrah Heavy, Kuwait Export
Iran Light: Comparable to Arab Light, Basrah Light, UAE Murban
4. Critical Assets Amid Unrest
Key infrastructure at risk for global supply:
Kharg Island export terminal: Disruption would cut off most Iranian crude exports
Southwest oil fields (Ahvaz, Gachsaran, Marun, West Karun): Loss would severely reduce production
Goreh–Jask pipeline/Jask terminal: Only alternative export route bypassing Strait of Hormuz
Refineries (Abadan, Bandar Abbas): Targeted attacks could limit domestic supply and product exports
Strait of Hormuz: Closure or disruption impacts >20% of global seaborne oil flows, not just Iran’s
5. Market View
Bullish for global oil prices if unrest or conflict threatens:
Kharg Island terminal
Southwest oil fields
Strait of Hormuz transit
Disruption to any of these would materially tighten global supply, as Iranian barrels are not easily replaced in the short term.
Summary Table: Iran Oil Market Fundamentals (2025–2026)
Metric | Value/Status (2025–2026) |
|---|---|
Crude production | 3.2–3.3 mmbbl/d |
Total liquids (incl. NGLs) | ~4.7 mmbbl/d |
Crude exports | 1.5–1.8 mmbbl/d |
Main export terminal | Kharg Island (~1.5 mmbbl/d) |
Main importer | China (>90% of exports) |
Key grades | Iran Heavy, Iran Light, Condensate |
Comparable crudes | Arab Light/Medium, Basrah, Murban |
Critical assets | Kharg, SW fields, Hormuz, Jask |
Risk: Any major disruption to Kharg Island, West Karun fields, or the Strait of Hormuz would have an outsized impact on global oil prices due to the scale and lack of immediate alternatives.
Current market bias: Bullish, given elevated geopolitical risk and the potential for supply shocks from Iran.
Next Question: Give me further details on the Kharg Island export terminal?
Kharg Island Export Terminal: Key Facts (2026)
Location:
34 miles (55 km) northwest of Bushehr, northern Persian Gulf
Strategically positioned with deepwater access for VLCCs and ULCCs
Role in Iranian Oil Exports:
Handles >90% of Iran’s crude exports (currently ~1.5–1.8 mmbbl/d)
Main outlet for both onshore (Iran Light, Iran Heavy) and offshore (Foroozan Blend) grades
Infrastructure & Capacity:
Storage: ~28.3 million barrels (as of May 2025, with ongoing expansions)
Loading Capacity: Up to 7 million bbl/d (theoretical), 10 VLCCs can berth simultaneously
Jetties:
Eastern “T” Jetty: Can berth 5–6 tankers (up to 275,000 tons each)
Western “Azarpad” Jetty: Can berth 3 VLCCs/ULCCs (up to 500,000 tons each)
Pipelines: Multiple large-diameter pipelines (30", 42", 52") from major southwestern oil fields; 5 submarine pipelines feed the island
Loading Rate: Up to 670,000 bbl/hr (all grades, via advanced marine loading arms)
Grades Exported: Iran Light, Iran Heavy, Foroozan Blend
Recent Upgrades:
2 million barrels of new storage (May 2025)
Modernization of loading arms, fire suppression, and control systems
Ongoing projects to further expand storage and operational resilience
Strategic Importance:
Central hub for Iran’s oil revenue and economic stability
Highly fortified, with significant passive defense and emergency response infrastructure
Past target of military attacks (notably during the Iran-Iraq War)
Physical Layout & Operations
Oil from Ahvaz, Gachsaran, Marun, and West Karun fields is piped to Kharg, separated by grade, and stored in tanks (140,000–1,000,000 bbl each)
Oil is loaded onto tankers via metered, segregated lines to prevent contamination between grades
Facilities support simultaneous multi-grade, multi-tanker operations
Market Impact & Risk
Disruption Scenario: Any significant outage at Kharg Island would immediately halt >90% of Iranian crude exports, removing up to 1.5–1.8 mmbbl/d from the market—volumes not easily replaced.
Bullish Risk: Even minor operational disruptions or military threats to Kharg Island can trigger sharp upward moves in Brent and Dubai benchmarks due to its outsized role in regional and global balances.
Summary Table: Kharg Island Terminal
Metric | Value/Status (2025–2026) |
|---|---|
Share of Iran exports | >90% |
Storage capacity | ~28.3 million barrels |
Loading capacity | Up to 7 mmbbl/d |
Tanker berths | 10 VLCCs (simultaneous) |
Main grades handled | Iran Light, Iran Heavy, Foroozan |
Key jetties | Eastern “T” Jetty, Azarpad Jetty |
Strategic risk | Extremely high |
Bottom line:
Kharg Island is the single most critical asset in Iran’s oil export system. Its uninterrupted operation is essential for both Iranian revenues and global oil market stability. Any credible threat to Kharg Island’s infrastructure would be strongly bullish for oil prices.
For further technical detail, see: