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Iran Faces Economic Disaster as US Blockade Suffocates Regime’s Oil Lifeline
Ships and boats in the Strait of Hormuz, Musandam, Oman, April 22, 2026. Photo: REUTERS/Stringer
As intensifying US pressure squeezes the Iranian energy sector, Iran’s oil lifeline is fraying — exports are sliding, storage is nearing capacity, and mounting economic strain is fueling the risk of renewed internal unrest that could further test the regime’s grip on power.
According to a newly released report from commodity analytics firm Kpler, Iran’s oil exports fell sharply after a US naval blockade on Iranian ports took hold in mid-April, dropping from an average of just over 2 million barrels per day earlier this month and 1.85 million in March to only five tracked cargoes and roughly 567,000 barrels per day in the past two weeks.
Even with Iran’s national oil company already cutting output to avoid dangerous bottlenecks as storage approaches capacity limits, the country is running out of space quickly, with Kpler estimating remaining storage could be exhausted within 12 to 22 days.
Despite Iranian officials claiming that 31 tankers have escaped the blockade zone, there is no evidence of any successful transits, with vessels reportedly passing through the Strait of Hormuz only to be stopped short of the US blockade further south between the Gulf of Oman and the Arabian Sea.
The US blockade has prevented the regime from exporting energy through the Strait of Hormuz — a critical global energy chokepoint through which about one-fifth of the world’s oil supply passes.
Amid a collapse in exports of more than 70 percent, the Iranian government has been forced to start cutting production, signaling a deepening economic crisis. Now the regime faces a critical choice between shutting wells and risking long-term damage to critical fields.
Sudden and prolonged shutdowns at oil production plants can cause lasting damage to reservoirs by disrupting pressure systems and flow dynamics, making it increasingly difficult — and in some cases impossible — to restart operations and restore production levels to their previous capacity, often costing millions to reverse.
According to Homayoun Falakshahi, head of Kpler’s crude oil analysis team, Iran’s oil sector has long suffered from underinvestment and poor reservoir management, resulting in an average recovery rate of just 25 percent. This means only about a quarter of the oil in a field can typically be extracted before production must be halted, and once wells are shut, restarting them makes it harder and less efficient to recover what remains.
Even though Kpler’s report estimates Tehran may not feel the full revenue hit for another three to four months due to payment delays and pre-existing sales flows, the regime is expected to face a heavy blow, with losses potentially reaching $200–250 million per day.
In an effort to prevent a wider infrastructure breakdown and avoid sharper production slowdowns, Iran is turning to improvised oil storage and alternative export routes.
Specifically, the regime is reportedly turning to disused “junk storage” sites, makeshift containers, floating storage on vessels, and even rail shipments of crude to China as export bottlenecks continue to build.
After repeated efforts to bring Iran back to the negotiating table to discuss its nuclear and missile programs and support for terrorism, the Trump administration escalated pressure on the Islamist regime earlier this month by imposing a naval blockade against vessels of all nations entering or departing Iranian ports and coastal areas, aiming to reach a deal that would bring an end to the conflict.
Trump told aides this week to prepare for an extended blockade of Iran until the regime agrees to a favorable deal, according to multiple reports.
Since the start of the war with joint US-Israeli strikes earlier this year, Iran has used control over the Strait of Hormuz as a major source of leverage, militarizing the waterway and sharply restricting maritime traffic through one of the world’s most critical shipping corridors. However, the US blockade as taken away much of that leverage, with the calculus that the regime can only hold out for so long as Iran faces total economic collapse.
Adding to an already crippling economy, Iran’s national rial currency hit a record low Wednesday of 1.8 million to the dollar. The fall is expected to trigger further fuel inflation.
Meanwhile, Iran’s foreign trade has also collapsed sharply during the first month of the conflict, deepening the country’s isolation from global markets.
Official customs data shows non-oil trade dropped to just $6.4 billion last month, a 30 percent decline from the previous month and 50 percent lower than a year earlier, before the war, Iran International reported.
As the country’s industrial base — a target of US-Israeli strikes before the ceasefire took effect earlier this month — comes under strain, the Iranian government has been forced to halt petrochemical and steel exports, sectors that account for more than a third of its non-oil revenue.
On Monday, the Iran Trade Promotion Organization ordered a suspension of steel slab and sheet exports until May 30, putting at risk industries that generate up to $20 billion annually.
With domestic tensions rising and the internal economic crisis worsening, Iranian officials are increasingly wary that renewed protests could erupt in the coming days, further destabilizing an already volatile situation.
Iran International reported that, this week, Iran’s Supreme National Security Council held an emergency meeting amid growing concern over a possible resurgence of protests, warning of renewed unrest following the nationwide anti-government demonstrations earlier this year, which security forces violently crushed, leaving tens of thousands of demonstrators tortured, imprisoned, or killed.
Officials now reportedly warn that worsening economic hardship, driven by inflation, rising unemployment, and damage to key industries such as petrochemicals and steel, could ignite the next wave of unrest.
According to Israeli intelligence assessments, widespread damage to Iran’s petrochemical and defense sectors has already wiped out an estimated 100,000 jobs.
Iranian security officials estimate that nationwide internet shutdowns have also left around 20 percent of online-dependent workers unemployed, warning that up to two million more private-sector jobs could be lost by the end of spring.
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Interviews with Holocaust survivors reveal the richness of Yiddish
Many people today prize the Yiddish of native speakers who grew up in Eastern Europe before World War II, viewing it as a mark of linguistic authenticity.
As a language of daily life that millions of Jews spoke in a range of regional dialects, Yiddish had, over the centuries, become enriched with many words and idioms that were unique to a specific location.
More than 80 years after the end of the Holocaust, very few of those speakers are still around. As a result, the Yiddish they spoke is deemed precious. Thanks to a new online resource, in which dozens of Holocaust survivors talk about their lives before, during and after the war, anyone can now hear the language of that bygone era.
There are already a number of resources that document the Yiddish of these native speakers. Among the earliest examples are 28 audio recordings made by David Boder, a psychologist who traveled from the United States to Europe in 1946 to interview Holocaust survivors. He asked them about their wartime experiences in nine different languages, including Yiddish.
Another valuable source for hearing native Yiddish speakers is the Language and Cultural Atlas of Ashkenazic Jewry (LCAAJ). In the late 1950s, linguist Uriel Weinreich launched this project, based at Columbia University, to study Yiddish dialects and folklore. Weinreich and his colleagues taped responses from over 600 European-born Yiddish speakers to a detailed survey of their language, with over 3,000 individual questions, as in, for example: “What games did you play as a child?”
One of the largest number of recordings of these Yiddish speakers can be found in the Shoah Foundation’s Visual History Archive (VHA), launched in 1994. Based at the University of Southern California, the VHA holds almost 50,000 video interviews with Holocaust survivors. Among these recordings, which were conducted in 32 different languages, are more than 600 entirely or partially in Yiddish. Until recently, only people who had access to the VHA, mostly through university libraries, were able to listen to this trove of Yiddish speakers as they relate their life histories. Thanks to a new online resource, known as the Corpus of Spoken Yiddish in Europe (CSYE), anyone can now hear these interviews.
The CSYE is the brainchild of Yiddish sociolinguist Isaac Bleaman who first worked with the VHA’s Yiddish interviews for his doctoral dissertation, where he compared the Yiddish spoken in the 2010s by Hasidim and Yiddishists. Through these recordings, Bleaman was able to explore how these two contemporary forms of Yiddish developed.
After joining the faculty at Berkeley, Bleaman sought a way to make the VHA’s Yiddish interviews more accessible to both linguists and students learning the language. Eventually, he received permission from the Shoah Foundation to use some 200 of its Yiddish videos for this purpose, and in 2022 he was awarded a multiyear grant from the National Science Foundation to establish the CSYE.
Creating this online resource entails manually transcribing the interviews, which are rendered both in transliteration and in the Yiddish alphabet. This is a painstaking process that relies on skilled speakers of Yiddish as well as other languages that the survivors may have included in the interviews. The transcripts, when synced with the videos, enable users of the CSYE to search the interviews for specific terms and topics.
A database on the CSYE lists each survivor’s name, city of birth, gender, age and dialect of Yiddish (Central, Northeastern, or Southeastern). The website also features an interactive map, showing the location of each survivor’s hometown, grouped by dialect. A different map shows where the VHA interviews were recorded in the 1990s. Ranging across Europe, the Americas, Australia and Israel, they reflect the scope of the postwar Yiddish-speaking diaspora.
In this Yiddish interview, for example, Holocaust survivor Lazar Milamed talks about his childhood in a Ukrainian village, his experiences under the Nazis and his post-war life in Brooklyn.
The CSYE also offers an interactive page that enables users to generate their own word maps to explore the geographic range of words or patterns of speech.
To demonstrate how the CSYE can be used for linguistic research and for language learning, the website provides instruction on pronunciation, as well as examples of the East European Yiddish dialects (for example, which of the interviewees said nit for the word “not” vs. those who said nisht). To date, 171 interviews, totaling more than 300 hours, have been transcribed. When this process is completed, the CSYE explains on its website, it will provide public access to “the most extensive source of conversational Yiddish ever compiled,” which will “bring the voices and narratives of native Yiddish speakers into the classroom.”
For the Yiddish student, teacher and researcher, or anyone else who loves the language, the CSYE is an extraordinary resource. Listening to survivors recount their life histories is compelling, both for the experiences they recall and for the cherished language in which they speak.
The post Interviews with Holocaust survivors reveal the richness of Yiddish appeared first on The Forward.
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Trump Says US May Strike Iran Again but That Tehran Wants Deal
People walk past a mural depicting the late leader of the Islamic Revolution, Ayatollah Ruhollah Khomeini, and the late Iran’s Supreme Leader Ayatollah Ali Khamenei, in Tehran, Iran. Photo: Majid Asgaripour/WANA (West Asia News Agency) via REUTERS
President Donald Trump said on Tuesday that the United States may need to strike Iran again and that he had been an hour away from ordering an attack before postponing it.
Trump made the comments a day after saying he had paused a planned resumption of hostilities following a new proposal by Tehran to end the US-Israeli war.
“I was an hour away from making the decision to go today,” Trump told reporters at the White House on Tuesday.
Iran‘s leaders are begging for a deal, he said, adding that a new US attack would happen in coming days if no agreement was reached.
The United States has been struggling to end the war it began with Israel nearly three months ago. Trump has previously said that a deal with Tehran was close, and similarly threatened heavy strikes on Iran if it did not reach an accord.
The US president is under intense political pressure at home to reach an accord that would reopen the Strait of Hormuz – a key route for global supplies of oil and other commodities. Gas prices remain high and Trump‘s approval rating has plummeted as congressional elections loom in November.
Oil prices settled lower on Tuesday after Vice President JD Vance said Washington and Tehran had made a lot of progress in talks and neither side wanted to see a resumption of the military campaign. “We’re in a pretty good spot here,” he said.
Speaking to reporters at a White House briefing, Vance acknowledged difficulties in negotiating with a fractured Iranian leadership. “It’s not sometimes totally clear what the negotiating position of the team is,” he said, so the US is trying to make its own red lines clear.
He also said one objective of Trump‘s policy is to prevent a nuclear arms race from spreading in the region.
IRAN PROMISES RESPONSE TO ANY NEW ATTACK
In Tehran, Ebrahim Azizi, head of the Iranian parliament’s national security committee, said on X that pausing an attack was due to Trump‘s realization that any move against Iran would mean “facing a decisive military response.”
Iranian state media said Tehran‘s latest peace proposal involves ending hostilities on all fronts including Lebanon, the exit of US forces from areas close to Iran, and reparations for destruction caused by the US-Israeli attacks.
Tehran also sought the lifting of sanctions, release of frozen funds, and an end to the US marine blockade, according to Deputy Foreign Minister Kazem Gharibabadi as cited by IRNA news agency.
The terms as described in the Iranian reports appeared little changed from Iran‘s previous offer, which Trump rejected last week as “garbage.”
BOTH SIDES ‘CHANGING GOALPOSTS,’ SAYS PAKISTANI SOURCE
Reuters could not determine whether military preparations had been made for strikes that would mark a renewal of the war Trump started in late February.
Trump said on Monday that Washington would be satisfied if it could reach an agreement that prevented Tehran from obtaining a nuclear weapon.
A Pakistani source confirmed that Islamabad, which has conveyed messages between the sides since hosting the only round of peace talks last month, had shared the Iranian proposal with Washington.
The sides “keep changing their goalposts,” the Pakistani source said, adding, “We don’t have much time.”
CEASEFIRE MOSTLY HOLDING
The US-Israeli bombing killed thousands of people in Iran before it was suspended in a ceasefire in early April. Israel has killed thousands more and driven hundreds of thousands from their homes in Lebanon, which it invaded in pursuit of the Iran-backed Hezbollah terrorist group.
Iranian strikes on Israel and neighboring Gulf states have killed dozens of people.
The Iran ceasefire has mostly held, although drones have lately been launched from Iraq towards Gulf countries, including Saudi Arabia and Kuwait, apparently by Iran and its allies.
The US seized an Iran-linked oil tanker in the Indian Ocean overnight, the Wall Street Journal reported on Tuesday, citing three US officials. The tanker, known as the Skywave, was sanctioned by the US in March for its role in transporting Iranian oil, the report said.
Trump and Israeli Prime Minister Benjamin Netanyahu said they launched the war to curb Iran‘s support for regional militias, dismantle its nuclear program, destroy its missile capabilities, and create conditions for Iranians to topple their rulers.
But the war has yet to deprive Iran of its stockpile of near-weapons-grade enriched uranium or its ability to threaten neighbors with missiles, drones, and proxy militias.
The Islamic Republic’s clerical leadership, which had faced a mass uprising at the start of the year, withstood the superpower onslaught with no sign of organized opposition.
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Somaliland Says It Will Open an Embassy in Jerusalem, Israel to Reciprocate
Israeli Foreign Minister Gideon Saar meets with Somaliland President Abdirahman Mohamed Abdullahi on Jan. 6, 2026. Photo: Screenshot
Somaliland, a self-declared republic in East Africa, will set up an embassy in Jerusalem soon, its ambassador said on Tuesday, after Israel became the first country to formally recognize it as an independent and sovereign state.
In turn, Israel is expected to set up an embassy in Somaliland‘s capital Hargeisa, Ambassador Mohamed Hagi said in a post on X.
Somaliland, which has claimed independence for decades but remains largely unrecognized, is situated on the southern coast of the Gulf of Aden and bordered by Djibouti to the northwest, Ethiopia to the south and west, and Somalia to the south and east. It has sought to break off from Somalia since 1991 and utilized its own passports, currency, military, and law enforcement.
Unlike most states in its region, Somaliland has relative security, regular elections, and a degree of political stability.
Last month, Israel appointed Michael Lotem as its first ambassador to Somaliland, after the two governments formally established full diplomatic relations.
Lotem, who was serving as a non-resident economic ambassador to Africa at the time of his appointment, will now shift to work as a non-resident ambassador to Somaliland. He previously served as Israel’s ambassador to Kenya, Uganda, Tanzania, Malawi, and Seychelles, a position he concluded in August.
Israel recognized Somaliland as an independent and sovereign state in December, a move Somalia rejected and termed a “deliberate attack” on its sovereignty.
Over the years, Somalia has rallied international actors against any country recognizing Somaliland.
The former British protectorate hopes that recognition by Israel will encourage other nations to follow suit, increasing its diplomatic heft and access to international markets.
Israel‘s Foreign Minister Gideon Saar said on Tuesday that the opening of the embassy in Jerusalem would be another significant step in strengthening relations with Somaliland. Once opened, the Somaliland embassy would be the eighth embassy in Jerusalem, he said.
Most countries maintain their embassies in Israel in Tel Aviv, although the United States moved its embassy to Jerusalem during President Donald Trump’s first administration. Fiji, Papua New Guinea, and a small number of other countries have also established embassies there.
Israel considers all of Jerusalem to be its capital. However, Palestinians seek East Jerusalem, where the holiest sites in Judaism are located, as the capital of a future state.