Oil and Gas

Zawiya refinery shut down in ‘precautionary measure’ as emergency declared following explosions and gunfire nearby.

Libya’s largest operational oil refinery at Zawiya has been shut down and ‌an emergency declared following fighting between armed groups nearby.

The National Oil Corporation (NOC) and Zawiya Refining Company announced a “precautionary halt” to operations and evacuated employees from the oil complex and port.

NOC confirmed the safety of all employees and added that fuel supplies would continue as normal.

A Facebook statement said alarm sirens were activated “following armed clashes involving heavy weapons that erupted around the oil complex in the early hours of Friday”.

“These clashes resulted in several heavy weapons projectiles landing in various locations within the oil complex,” adding that no significant damage had been reported.

“However, the clashes have intensified and reached the residential area adjacent to the refinery, making the area a direct target for heavy shelling and significantly increasing the risk of further damage,” it said.

Authorities in Zawiya, west of the capital Tripoli, said they had launched a “large-scale operation” against criminal groups, as fighting and explosions were heard, the AFP news agency reported.

The operation targeted “criminal hideouts and wanted individuals” who were “involved in serious acts”, the authorities said, citing “murder and attempted murder, kidnapping and extortion, drug, arms and human trafficking and illegal migration”.

Videos verified by Al Jazeera showed explosions and gunfire, as well as damage to several cars and facilities inside the refinery. The sound of sirens was audible after shells fell inside operational sites.

The Zawiya Refining Company called on all parties to cease fire immediately and for the Libyan authorities to intervene to protect lives and key facilities.

The refinery, around 40km (25 miles) west of Tripoli, has a capacity of 120,000 barrels per day. It is connected to the 300,000 ⁠bpd Sharara oilfield.

Since Muammar Gaddafi’s downfall in 2011, Libya has been plagued by violence between the Tripoli-based Government of National Unity (GNU), led by Prime Minister Abdul Hamid Dbeibah, and the eastern-based government, led by military leader Khalifa Haftar which is not internationally recognised.

It is unclear what caused the fighting, but local media said it started following a security operation against armed groups.

Footage released by the Pentagon shows US strikes on two Iranian oil tankers in the Strait of Hormuz. The US military says the vessels were disabled following overnight exchanges of fire with Iranian forces, preventing them from reaching ports in the Gulf of Oman.

Brent crude rises amid clashes in critical waterway.

Oil prices have jumped after clashes between United States and Iran in the Strait of Hormuz pushed their tenuous ceasefire to the brink.

Futures for Brent crude rose as much as 7.5 percent during a volatile trading session on Thursday, before easing as Asia’s markets opened on Friday morning.

The international benchmark stood at $101.12 per barrel as of 03:00 GMT, down from the day’s high of $103.70.

The latest rise came after the US and Iran exchanged fire in the critical strait, a conduit for about one-fifth of global oil and natural gas supplies, despite the truce announced between the sides on April 7.

US Central Command (CENTCOM) said it launched strikes on Iran after three US Navy guided-missile destroyers came under attack from Iranian missiles, drones and small boats in the strait.

Iran’s Khatam al-Anbiya Central Headquarters earlier accused the US of violating the ceasefire by attacking an Iranian oil tanker and another vessel in the vicinity of the waterway.

The Iranian military headquarters also accused the US of targeting civilian areas, including Qeshm Island.

US President Donald Trump on Thursday appeared to downplay the clashes, saying the ceasefire remained in effect, while Iran’s state-run Press TV said the situation had gone “back to normal”.

Shipping in the strait has been at a near standstill since late February amid the threat of Iranian attacks on the massive oil tankers that usually transport much of the world’s energy supplies.

Brent prices are up about 40 percent compared with before the war amid an estimated shortfall in daily production of 14.5 million barrels.

Asian stock markets opened lower on Friday amid the heightened tensions, with Japan’s benchmark Nikkei 225, South Korea’s KOSPI and Hong Kong’s Hang Seng Index each falling more than 1 percent.

On Wall Street, the benchmark S&P 500 fell about 0.4 percent overnight after hitting an all-time high the previous day.

Secessionists in the western Canadian province of Alberta recently announced that they have gathered enough signatures to launch a referendum on independence from the rest of the country.

Leading secessionists said that they formally submitted about 300,000 signatures to election authorities earlier this week, far more than the 178,000 required for the province to consider a referendum.

“This day is historic in Alberta history,” secessionist leader Mitch Sylvestre said.

“It’s the first step to the next step — we’ve gotten by Round 3, and now we’re in the Stanley Cup final,” he added, referring to a hockey championship tournament.

Even if a vote were in favour of independence, an uncertain and protracted process would follow, including possible legal challenges and negotiations with the federal government.

But the possibility of a referendum has brought renewed attention to Alberta’s longstanding frustrations with federal power in Canada and calls for greater autonomy.

What is driving Alberta’s secessionist movement? What are the prospects of success for the referendum, and what could it mean for Canadian politics? Here’s what you need to know.

How many signatures were collected?

Alberta secessionists said on Monday that they had submitted nearly 302,000 signatures, more than the 178,000 required to qualify for referendum consideration.

Alberta Premier Danielle Smith has said she would move forward with the vote if the petition gathered enough signatures, although she does not support independence from Canada herself.

What would the referendum ask voters?

If the proposed measure makes it to the ballot, it would ask voters: “Do you agree that the Province of Alberta should cease to be a part of Canada to become an independent state?”

Does this guarantee a referendum, and could Alberta actually separate from Canada?

Meeting the signature requirement does not in itself guarantee that a referendum will take place.

Elections Alberta, the province’s electoral authority, still needs to verify the petitioners’ names, a process that has been stalled by a court ruling.

Indigenous groups have also filed a legal challenge, stating that separation would be a violation of their treaty rights.

There are also questions about whether the referendum will gather sufficient support among voters to pass. Polls have shown that about 30 percent of residents would support such a measure.

What’s behind Alberta’s bid for separatism?

While secession has never been so close to a vote in Alberta, pro-independence sentiment has been part of the province’s political culture — home to about 5 million people — for decades.

That sentiment is driven largely by the feeling of many in Alberta that the province is distinct — culturally, economically, and politically — from the rest of Canada.

The oil-rich western province has long expressed frustration with political decision-making in Ottawa, the Canadian capital, despite what it sees as its outsized economic contribution to the national economy through its massive fossil fuel industry.

Environmental regulations and efforts to address climate change have become another flashpoint, with secessionist leaders depicting Alberta’s primary industry as hamstrung by regulatory decisions made by bureaucrats with little understanding of the province.

“We’re not like the rest of Canada,” secessionist leader Sylvestre told the news service AFP. “We’re 100 percent conservative. We’re being ruled by Liberals who don’t think like us.”

“They’re trying to shut down our industry,” he added.

Have any other provinces considered separating from Canada?

Alberta is not the only region with a complicated relationship with the rest of Canada.

The French-speaking province of Quebec is home to a decades-old nationalist movement that has pushed to separate from Canada, rooted in a desire to recognise Quebec’s distinct linguistic and cultural identity.

The popularity of that movement has ebbed, with a March poll finding Quebecois secessionism at its lowest level of support since voters narrowly rejected a referendum in 1995. Still, the secessionist Parti Quebecois political party is polling high in advance of a provincial election set for later this year.

Has the push for independence attracted criticism?

As with all independence movements, the province’s bid for separation from the rest of Canada has become a source of passionate disagreement.

“It stands for something that most of us Albertans and Canadians don’t stand for,” Thomas Lukaszuk, the province’s former deputy premier and a strong supporter of federalist identity, told AFP. “It’s a form of treason.”

Expressions of support from the administration of United States President Donald Trump, who has angered Canadians by suggesting that the country should become a US state, have also sparked criticism that the secessionist movement is undermining Canadian unity.

Asked about the possibility of independence in January, US Treasury Secretary Scott Bessent said that Alberta would be a “natural partner” for the US.

“Alberta has a wealth of natural resources, but they won’t let them build a pipeline to the Pacific,” Bessent told a US right-wing commentator. “I think we should let them come down into the US, and Alberta is a natural partner for the US. They have great resources. The Albertans are very independent people.”

“The separatists are not elected members. They’re just citizens of Canada residing in Alberta, and they actually formed delegations and are received by the highest levels of US administration,” Lukaszuk said. “That must be very empowering to them.”

Regardless of whether the proposed ballot measure succeeds, the development is likely to serve as a shot in the arm for the province’s secessionist forces.

“I think this is going to be a permanent change in our political culture,” independent historian and supporter of independence Michael Wagner told AFP, adding that the movement “is not going to just disappear”.

What happens next?

A provincewide ballot could take place as soon as October, as part of a larger referendum on several questions relating to constitutional issues and other matters, such as immigration, scheduled for October 19.

Justice Shaina Leonard issued a monthlong stay on the certification of the independence petition on April 10, following a legal challenge from several First Nations groups who say separation would violate treaty rights.

That ruling did not bar the gathering of signatures, and a decision on legal challenges from Alberta First Nations is expected later this week. A decision in favour of the First Nations challengers could render the process academic.

US president Donald Trump has said that the US military operation “Project Freedom” guiding ships through the Strait of Hormuz will be paused for a short period. He cited a request from Pakistan and progress towards a final deal with Iran.

Iran claims its navy forced a US warship to turn back from the Strait of Hormuz as Washington denies any clash, amid rising tensions in the key waterway. The rival narratives come after US President Donald Trump announced Project Freedom, a mission he framed as a humanitarian effort to “free” stranded ships.

Dealing with emissions could help alleviate effects of Iran crisis on global energy supply, says report.

Tackling methane emissions in the fossil fuel sector would help efforts to hold back climate change and increase energy security, especially as the Iran crisis threatens global supplies, according to a report by the International Energy Agency (IEA).

The oil, gas and coal industries account for about 35 percent of all methane emissions from human activity, notes the IEA’s Global Methane Tracker 2026, released on Monday. However, there is little progress in reducing them, the report points out.

“There is still no sign that methane emissions from fossil fuel operations are falling, despite well-known and proven mitigation pathways,” the IEA said.

Methane, the second-biggest contributor to climate change, stays in the atmosphere for far less time than carbon dioxide, but its warming effect is roughly 80 times more potent over a 20-year period.

The IEA estimates that methane emissions from oil, gas and coal total 124 million tonnes a year. Oil is the largest source at 45 million tonnes (Mt), followed by coal at 43 Mt, and natural gas at 36 Mt.

“A further 20 Mt comes from bioenergy production and consumption, largely from the incomplete combustion of traditional biomass used for cooking and heating in developing economies,” the report added.

Oil prices have soared since the United States and Israel launched their war against Iran in late February and Tehran closed the Strait of Hormuz in response. An April ceasefire between the sides is currently holding, but global energy supplies remain limited.

The ongoing crisis is reshaping the global energy system and disrupting about 20 percent of global liquefied natural gas (LNG) trade flows.

Nearly 100 billion cubic metres of natural gas could be made available annually through a global effort to cut methane from oil and gas operations, the IEA said, estimating that nearly 15 billion cubic metres could be made available in a sufficiently short period of time to provide some relief to gas markets.

A further 100 billion cubic metres would be unlocked through the elimination of non-emergency flaring worldwide, it added.

Paris initiative

France, using its role as rotating chair of the Group of Seven (G7) bloc of industrialised powers, convened government officials, industry leaders and experts on Monday to build momentum on cutting methane emissions.

The conference aimed at reducing methane emissions ahead of the United Nations’ November COP31 summit.

“I sincerely hope that the discussions we will have today will enable us to join our forces to accelerate the implementation of effective solutions to reduce methane emissions,” French Ecological Transition Minister Monique Barbut said in a speech.

“Of course, action on methane is not a fight of any single actor and nobody can win it alone,” she added, noting that the world remains “very far” from meeting a pledge to cut methane emissions by 30 percent by 2030 compared with 2020 levels.

“Reducing methane emissions remains one of the best things we can do to slow global warming while cleaning up our air, improving public health, and increasing our energy security,” British Secretary of State for Energy Security Ed Miliband said in a video message.

US President Donald Trump has announced ‘Project Freedom’, a naval mission to escort stranded ships through the Strait of Hormuz starting Monday, warning any interference will be met “forcefully”. The move comes amid a fragile US-Iran truce, with Tehran warning it would treat US intervention as a breach.

Iran says the Strait of Hormuz will never return to the status quo that existed before the US and Israel launched their war. A draft Iranian law would permanently ban Israeli vessels and deny transit to nations deemed ‘hostile’ by their alliance with the US.

Ministry of Commerce says sanctions against refineries accused of importing Iranian oil violate international law.

China has announced an injunction to block US sanctions placed on five Chinese refiners accused ‌of buying oil from Iran.

The sanctions announced by the United States Department of the Treasury late last month bar the companies from the US financial system and seek to penalise anyone doing business with the firms.

In a statement on Saturday, China’s Ministry of Commerce said the sanctions “improperly” restrict business between Chinese enterprises and third countries “in violation of international law and the basic norms governing international relations”.

The Commerce Ministry said it had issued a “prohibition order” stipulating that the sanctions “shall not be recognized, enforced, or complied with” to “safeguard national sovereignty, security, and development interests”.

“The Chinese government has consistently opposed unilateral sanctions that lack UN authorisation and basis in international law,” the ministry added.

It said the order blocked US measures against Hengli Petrochemical (Dalian) Refinery and four other so-called “teapot” refineries: Shandong Jincheng Petrochemical Group, Hebei Xinhai Chemical Group, Shouguang Luqing Petrochemical and Shandong ⁠Shengxing Chemical.

Announcing the sanctions on April 24, the US Treasury Department called Hengli “one of Tehran’s most valued customers”, saying it had generated hundreds of millions of dollars in revenue for the Iranian military through crude oil purchases.

The Trump administration imposed sanctions on the other four refineries named by the Chinese ministry, among other facilities, last year.

China gets more than half of its oil from the Middle East, much of it from Iran.

According to commodities data firm Kpler, China bought more than 80 percent of the oil Iran shipped in 2025.

China’s “teapot” refineries operate independently and are generally smaller than the facilities run by state-owned oil giants, such as Sinopec.

The facilities, which have been crucial to China’s efforts to secure its oil supplies, capitalise on heavily discounted crude sold by countries under sanctions, such as Iran, Russia and Venezuela.

Teapots account for a quarter of Chinese ⁠refinery capacity, operate with narrow and sometimes negative margins, and have been squeezed recently by tepid domestic demand.

US sanctions have created additional hurdles for refiners, including difficulties selling refined products under their correct place-of-origin markings.

Syria is receiving hundreds of Iraqi oil trucks hauling crude overland to its Baniyas port as an alternative energy corridor to Europe, creating a costly but crucial workaround while the Strait of Hormuz is largely blocked by the US-Israeli war on Iran.

Donald Trump says US forces are ‘like pirates’ taking over Iranian ships and cargo near the Strait of Hormuz. The US is maintaining a blockade of Iran’s ports and has seized at least three Iranian flagged vessels.

Workers are gathering in cities around the world to mark International Labour Day, with some demonstrations, such as those in Istanbul, Turkiye, turning to scuffles with police.

Trade Unions are calling for solidarity and the protection of workers’ rights as the United States-Israeli war on Iran and rising energy costs raise concerns about the global economy.

“Working people refuse to pay the price for Donald Trump’s war in the Middle East,” the European Trade Union Confederation, which represents 93 trade union organisations in 41 European countries, told the media. “Today’s rallies show working people will not stand by and see their jobs and living standards destroyed.”

Josua Mata, leader of the SENTRO umbrella group of workers’ groups in the Philippines, said: “Every Filipino worker now is aware that the situation here is deeply connected to the global crisis.”

Renato Reyes, a leader of the left-wing political group Bayan in the Philippines, told The Associated Press: “There will be a louder call for higher wages and economic relief because of the unprecedented spikes in fuel prices.”

In Indonesia, Said Iqbal, president of the Indonesian Trade Union Confederation, told reporters: “Workers are already living pay cheque to pay cheque.”

Some of the largest demonstrations are being held in South America, including in Chile, Bolivia and Venezuela. In Argentina, angry workers protested on Thursday in the capital of Buenos Aires over President Javier Milei’s recent overhaul of long-held labour protections.

In Cuba, the foreign ministry held a gathering on Thursday in defiance of what it called the US’s “aggressions, threats, intensified blockade, and energy siege”.

On Friday, Cubans are expected to mark International Labour Day with a mass rally and a march in Havana.

In many countries, Labour Day rallies attract large crowds because May 1 is a public holiday. In the Turkish city of Istanbul, roads around Taksim Square were closed to make way for marches during the day. Later on Friday, demonstrators clashed with police, international media reported.

In France, where most people have the day off for May Day, workers’ unions using the slogan “bread, peace and freedom” called for protests in Paris and other cities.

Global recession fears

Fears of a global recession are looming over Labour Day rallies at a time when income inequality is growing.

In Gaza, Palestinian workers have cancelled May Day events because of the economic crisis caused by Israel’s genocidal war on Gaza and poor conditions on the ground.

The Palestinian General Federation of Trade Unions said that about 550,000 workers across Gaza and the West Bank have no income and that the situation is unprecedented.

The International Trade Union Confederation has reported that at least four CEOs of major corporations each pocketed more than $100m in pay and bonuses last year, while many workers are facing potential job cuts.

Workers’ rights coalitions are calling for urgent action to curb extreme wealth. They want governments to impose higher, fairer taxes on the wealthiest and limit excessive executive pay.

While Labour Day began in the US, when workers protested for an eight-hour workday in the 1880s, the US does not count May Day as a public holiday.

However, an umbrella group of activist and workers’ groups known as May Day Strong has called for protests under the slogan, “workers over billionaires”. Hundreds of demonstrations and marches have been planned across the US.

Chris Weafer, the CEO of Micro-Advisory Partners, says the UAE’s OPEC exit frees one million barrels of spare capacity. He warns Kazakhstan and Venezuela may follow, leaving OPEC far less influential on global oil pricing.

On March 11, the Thai cargo ship Mayuree Naree was struck by two projectiles while crossing the Strait of Hormuz, one of the world’s most important waterways located between Iran and Oman. A fire broke out in the engine room, and while 20 sailors were rescued, three remained trapped inside the stricken vessel. Their remains were found weeks later when a specialised rescue team boarded the vessel, which had run aground on the shores of Iran’s Qeshm island.

At about the same time, a “shadow fleet” of tankers continued to navigate the very same waters safely. Operating with fake flags, disabled signals and unspecified destinations, this covert armada survived because it operates outside the traditional rules of maritime trade.

Iran threatened to block “enemy” ships passing through the Strait of Hormuz – a crucial chokepoint for a fifth of the world’s oil – in the wake of the United States-Israeli war launched on February 28. Soon, navigation through the strait was disrupted amid fears of attacks.

Following a temporary ceasefire on April 8, the United States imposed a full naval blockade on Iranian ports on April 13. Theoretically, traffic through the strait should have come to a complete halt.

However, tracking data reveals a remarkably different reality.

An exclusive Al Jazeera open-source investigation tracked 202 voyages made by 185 vessels through the strait between March 1 and April 15, navigating both under fire and across blockade lines.

The numbers behind the shadows

To understand how the strait operated under extreme pressure, Al Jazeera’s Digital Investigative Unit monitored the waterway daily, cross-referencing vessel International Maritime Organization (IMO) numbers with international sanction lists from the US Office of Foreign Assets Control (OFAC), the European Union, the United Kingdom and the United Nations. An IMO number is a unique seven-digit figure assigned to commercial ships.

Of the tracked voyages, 77 (38.5 percent) were directly or indirectly linked to Iran. Notably, 61 of the ships transiting the strait were explicitly listed on international sanctions lists.

The investigation divided the conflict into three distinct phases to map the fleet’s behaviour:

• Phase 1: Open War (March 1 – April 6): 126 ships crossed the strait, peaking at 30 vessels on March 1. Among these, 46 were linked to Iran.
• Phase 2: The Truce (April 7 – 13): 49 ships crossed during this fragile pause. More than 40 percent of these vessels were tied to Iran, including the US-sanctioned, Iranian-flagged Roshak, which successfully exited the Gulf.
• Phase 3: The US Blockade (April 13 – 15): Despite the explicit naval blockade, 25 ships crossed the strait.

Breaking the blockade

When the US blockade took effect, the shadow fleet adapted immediately.

The Iranian cargo ship “13448” successfully broke the blockade. Because it is a smaller vessel operating in coastal waters, it lacks an official IMO number, allowing it to evade traditional sanction-monitoring tools. The vessel departed Iran’s Al Hamriya port and reached Karachi, Pakistan.

Similarly, the Panama-flagged Manali broke the blockade, crossing on April 14 and penetrating the cordon again on April 17 en route to Mumbai, India.

The investigation uncovered widespread manipulation of Automatic Identification System (AIS) trackers. Vessels such as the US-sanctioned Flora, Genoa and Skywave deliberately disabled or jammed their signals to hide their identities and destinations.

Fake flags and shell companies

To obscure ultimate ownership, the shadow fleet heavily relies on a complex web of “false flags” and shell companies. The investigation identified 16 ships operating under fake flags, including registries from landlocked nations like Botswana and San Marino, as well as others from Madagascar, Guinea, Haiti and Comoros.

The operational network managing these ships spans the globe. Operating firms were primarily based in Iran (15.7 percent), China (13 percent), Greece (more than 11 percent) and the United Arab Emirates (9.7 percent). Notably, the operators of nearly 19 percent of the observed vessels remain unknown.

The toll of a parallel system

Despite the intense military pressure, energy carriers dominated the traffic, with 68 ships (36.2 percent) transporting crude oil, petroleum products and gas. Ten of these tankers were directly linked to Iran. Non-oil trade also persisted, with 57 bulk and general cargo ships crossing during the open war phase, 41 of which were tied to Tehran.

Before the war, at least 100 ships crossed the Strait of Hormuz daily. Today, a staggering 20,000 sailors are trapped on 2,000 ships across the Gulf – a crisis the International Maritime Organization described as unprecedented since World War II.

A shadow Iranian fleet, meanwhile, has been navigating seamlessly as part of a parallel maritime system born from 47 years of US sanctions on Tehran. Washington slapped sanctions on Tehran following the 1979 Islamic revolution that toppled the pro-Washington ruler Shah Mohammad Reza Pahlavi. The two countries have had no diplomatic ties since 1980.

The US naval blockade of Iranian ports and the Strait of Hormuz, in place since April 13, has raised concerns that Iran could run out of crude oil storage capacity and be forced to curb production.

Bloomberg reported analysis on Tuesday from the data and analytics company Kpler suggesting Iran could run out of crude storage in 12 to 22 days if the blockade persists.

Last week, United States Treasury Secretary Scott Bessent claimed that storage capacity at Kharg Island, where most of Iran’s oil is exported, would be full “in a matter of days”.

So how quickly could Iran run out of oil storage, and why does it matter?

What is happening in the Strait of Hormuz?

The Strait of Hormuz is a narrow channel that connects the Gulf to the open ocean. It spans the territorial waters of Iran on its northern side and Oman on its southern side. It is not in international waters.

During peacetime, 20 percent of the world’s oil and liquefied natural gas (LNG) supplies are shipped through the corridor.

Two days after the US and Israel launched their first air strikes in their war on Iran on February 28, Ebrahim Jabari, a senior adviser to the commander in chief of Iran’s Islamic Revolutionary Guard Corps (IRGC), announced that the strait was “closed”. If any vessels tried to pass through, he said, the IRGC and the navy would “set those ships ablaze”.

As the war has dragged on and negotiations have failed to achieve a settlement, Iran has at times in the past two months allowed some “friendly” ships and those that pay tolls to pass. It is currently refusing to allow any foreign-flagged ships, including those previously deemed friendly, to pass until the US lifts its own naval blockade.

Iranian First Vice President Mohammad Reza Aref said on April 19 that the “security of the Strait of Hormuz is not free”.

“One cannot restrict Iran’s oil exports while expecting free security for others,” he wrote in a post on X.

“The choice is clear: either a free oil market for all, or the risk of significant costs for everyone,” he added. “Stability in global fuel prices depends on a guaranteed and lasting end to the economic and military pressure against Iran and its allies.”

Since the US naval blockade on the strait began, the US has opened fire on and taken control of an Iranian-flagged tanker near the Strait of Hormuz while also redirecting vessels on the high seas transporting cargo to or from Iran. Iran’s armed forces have denounced these actions as “an illegal act” that “amounts to piracy”.

The US naval blockade of the strait means that Iran might have to store the oil it produces.

Iran is the third largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC) after Saudi Arabia and Iraq and exports 90 percent of its crude oil via Kharg Island in the Gulf for shipping through the Strait of Hormuz.

What has the US claimed?

The US is eager to curb Iran’s oil revenues, which have risen since Tehran closed the Strait of Hormuz to other shipping. This is the primary motive behind Washington’s naval blockade of Iranian ports.

Iran exported 1.84 million barrels per day (bpd) of crude oil in March and shipped 1.71 million bpd in April, compared with an average of 1.68 million bpd in 2025, according to Kpler.

However, the US naval blockade since mid-April now means that most of its exports are having to be stored instead.

Bessent wrote in an X post on April 22: “In a matter of days, Kharg Island storage will be full and the fragile Iranian oil wells will be shut in.”

“Constraining Iran’s maritime trade directly targets the regime’s primary revenue lifelines.”

How much oil can Iran store?

Iran’s domestic refineries have a production capacity of 2.6 million bpd, according to the energy consultancy Facts Global Energy.

Satellite data show the amount of oil Iran has in storage has risen sharply since the US blockade began, and in the days after the US tightened it, stocks were rising so fast that it appeared Iran had been barely able to export any oil at all.

From April 13 to April 21, data showed that stocks rose by more than 6 million barrels, according to the Columbia Center on Global Energy Policy (CGEP). From April 17 to April 21, the stock increased very rapidly, growing by 1.7 bpd.

As of April 20, the storage tanks at Kharg were about 74 percent full after the island alone had taken on about 3 million extra barrels of oil, the CGEP reported.

Generally, oil companies avoid filling their storage beyond 80 percent capacity to balance safety, emissions control and flexibility.

However, Iran and other oil producing countries have exceeded this limit before, for instance, during the COVID-19 pandemic. In April 2020, Kharg island’s stocks reached close to 90 percent capacity, an all-time high.

Iran also has some crude oil storage capacity in the form of “floating tanks”, or parked ships. About 127 million barrels can be stored in this way, Frederic Schneider, a nonresident senior fellow at the Middle East Council on Global Affairs, told Al Jazeera in an interview on April 14.

Will Iran need to cut oil production?

Muyu Xu, a senior crude oil analyst at Kpler, told Al Jazeera that the blockade could eventually force Iran to cut production.

“However, given there is still available storage capacity onshore (roughly covering 20 days of Iran’s current production), we expect any production reduction to be gradual over the coming week with a higher likelihood of acceleration into May,” she said.

Analysis by CGEP nonresident fellow Antoine Halff echoed this. Halff wrote in an article published by CGEP on Tuesday that it may be some time before the US blockade causes Iran to shut off its production “in a big way”.

However, Halff added, Iran may still choose to halt production “fairly aggressively” but this “would be more by choice than by necessity”.

He explained: “Doing so would have the advantage of providing Iran with relatively ample spare storage capacity after the shutdown and would allow for a smoother restart of operations once conditions permit, and the constraint is relaxed, thus minimising adverse impacts from the blockade on longer-term supply.”

Why does this matter?

Halting oil production risks damaging underground reservoirs by reducing reservoir pressure, allowing water or gas to encroach into producing layers and changing patterns of oil flow. This can make some oil harder or more expensive to recover later, experts said.

Restarting the process of oil production can also be slow and costly, involving repairs of corroded equipment or unclogging pipelines.

Halting production would also cause Iran’s export revenues to drop. However, analysts said that for a few months, Iran can continue to earn revenue from oil that is already in transit at sea.

Kenneth Katzman, former Iran analyst at the Congressional Research Service in Washington, DC, said Iran is not exporting new oil during the US blockade of Iranian ports but Tehran has 160 million to 170 million barrels of oil on ships around the world currently.

The UAE’s decision to quit OPEC to prioritise its ‘national interests’ deals a blow to the oil group already grappling with the challenge of shipping Gulf exports through the Strait of Hormuz. Here’s what we know about why it’s withdrawing and the impact it might have.

Brent crude rises more than 2 percent after Washington and Tehran fail to hold second round of talks in Pakistan.

Oil prices have climbed higher amid stalled peace talks between the United States and Iran.

Brent crude rose more than 2 percent on Sunday after hopes for a second round of ceasefire negotiations between Washington and Tehran unravelled over the weekend.

After easing slightly, Brent, the primary benchmark for global prices, stood at $106.99 as of 1:30 GMT.

Stock markets in Asia shrugged off the impasse to open higher on Monday, with Japan’s benchmark Nikkei 225 and South Korea’s KOSPI gaining 0.9 percent and 1.5 percent, respectively, in morning trading.

US President Donald Trump on Saturday cancelled a planned trip to Pakistan by his envoys, Steve Witkoff and Jared Kushner, after Iranian Minister of Foreign Affairs Abbas Araghchi departed Islamabad before any direct engagement could take place between the sides.

Araghchi arrived in Russia’s Saint Petersburg on Monday for talks with Russian President Vladimir Putin and other officials as Tehran seeks a way out of the diplomatic impasse.

Araghchi’s trip, which follows a whistle-stop visit to Oman on Sunday, comes as uncertainty hangs over the fragile ceasefire between Washington and Tehran.

Trump announced an extension to their two-week truce last week, without specifying a deadline for reaching a deal to end the war.

As US and Iranian negotiators struggle to break the deadlock, Tehran’s threats against commercial shipping in the Strait of Hormuz have reduced traffic to a trickle, paralysing a large portion of the world’s supply of oil and natural gas.

On Saturday, 19 commercial vessels transited the strait, which normally carries about one-fifth of global oil and natural gas supplies, according to maritime intelligence platform Windward.

Before the US and Israel launched their war on Iran in late February, the waterway saw an average of 129 daily transits, according to the United Nations Trade and Development.

United States President Donald Trump has claimed Iran is “collapsing financially” and said the country is losing millions of dollars a day due to Washington’s naval blockade of Iranian ports.

In a post on his Truth Social platform on Tuesday night, Trump wrote: “Iran is collapsing financially! They want the Strait of Hormuz opened immediately – Starving for cash! Losing 500 Million Dollars a day. Military and Police complaining that they are not getting paid. SOS!!!”

The US blockade of Iranian ports began at 14:00 GMT on April 13. Since then, the US has fired on and seized an Iranian-flagged tanker near the Strait of Hormuz, and redirected ships in the open seas carrying cargo to or from Iran. Iran’s armed forces have called this “an illegal act” that “amounts to piracy”.

In response to the US naval blockade, Iran has closed the Strait of Hormuz to all foreign shipping and has captured several foreign-flagged ships. Previously, it had allowed some ships deemed “friendly” to Iran to pass.

On April 19, Iran’s First Vice President Mohammad Reza Aref said the “security of the Strait of Hormuz is not free”.

“One cannot restrict Iran’s oil exports while expecting free security for others,” he wrote in a post on X.

“The choice is clear: either a free oil market for all, or the risk of significant costs for everyone,” he added. “Stability in global fuel prices depends on a guaranteed and lasting end to the economic and military pressure against Iran and its allies.”

In a statement on social media on Thursday, Iran’s parliamentary speaker and lead negotiator in the ceasefire talks, Mohammad Bagher Ghalibaf, said a full ceasefire could only work if the US naval blockade is lifted.

Analysts say the blockade is hurting Iran but believe the country has the economic and political will to sustain it.

How long can Iran survive the naval blockade?

Here’s what we know:

How is the naval blockade hurting Iran?

Iran exports oil, gas and other goods including petrochemicals, plastics and agricultural products by sea. Analysts say the US naval blockade of its ports, including in the Strait of Hormuz, could therefore affect this trade.

Soon after the start of the US-Israel war on Iran on February 28, authorities in Tehran implemented the effective closure of the Strait of Hormuz, the only waterway out of the Gulf, through which 20 percent of the world’s oil and liquefied natural gas (LNG) supplies were shipped from Gulf producers in peacetime.

The near-shutdown of the vital chokepoint sent global oil and gas prices soaring, and since then, Iran has controlled the strait. However, it has continued to export its own energy products through the waterway.

Iran’s oil exports through the Strait of Hormuz account for about 80 percent of its total oil exports. According to Kpler, a trade intelligence firm, Iran exported 1.84 million barrels per day (bpd) of crude oil in March and has shipped 1.71 million bpd so far in April, compared with an average of 1.68 million bpd in 2025.

From March 15 to April 14, it exported 55.22 million barrels of oil. The price per barrel of Iranian oil – across its three major variants, known as Iranian light, Iranian heavy and Forozan blend – has not fallen below $90 per barrel over the past month. On many days, the price has surpassed $100 a barrel.

Even at the conservative estimate of $90 a barrel, Iran has earned at least $4.97bn over the past month from its ongoing oil exports.

By contrast, in early February before the war started, Iran was earning about $115m a day from its crude oil exports, or $3.45bn in a month.

Simply put, Iran has earned 40 percent more from oil exports in the past month than it did before the war.

Stopping this is a key motivation behind the US naval blockade of Iranian ports.

In an interview with Al Jazeera on April 14, Frederic Schneider, a nonresident senior fellow at the Middle East Council on Global Affairs, told Al Jazeera that the previous six weeks had been a boon for Iran in terms of oil revenues, but with the US blockade, that will change.

“Iran has some buffer in the form of crude oil reserves in floating tanks – basically parked tankers – which was estimated at about 127 million barrels in February. But that doesn’t mean that the blockade wouldn’t hurt Iran,” he said.

On Friday, Schneider told Al Jazeera that Iran, however, seems to be “playing the longer game” and has anticipated and prepared for this sort of conflict to some degree.

“The naval blockade has added economic strain, as several civilian ships have been captured in international waters. But it remains unclear how tight the blockade is, how many ships manage to pass given the considerable amount of floating Iranian oil, and how long Trump can maintain the blockade,” he said.

Can the US keep the blockade going for long?

Schneider noted that Trump will face a legislative challenge by May 1, when the 60 days he can maintain a foreign offensive without congressional approval come to an end.

Dire conditions have been reported on the ships that are upholding the blockade, he said, and it remains to be seen how China will react to the continuing seizure of ships that carry any of its cargo.

“China has already said it sees the blockade of Chinese trade with Iran as unacceptable. Further, the closure of Hormuz by Iran in retaliation is hurting, if not the US itself that much, American allies in the region and globally, raising the pressure on Trump,” he said.

“If we can glean anything from the behaviour of the two sides, it is Iran that is signalling patience and Trump showing impatience,” he added.

Adam Ereli, a former US ambassador to Bahrain, told Al Jazeera’s This is America programme that while the US blockade of Iranian ports and seizure of vessels transporting Iranian oil “makes sense” as a policy, it may not work as intended due to domestic political considerations in the US.

“The Iranians have prepared for this, for this eventuality. They have their own plans. They’ve got alternative means of storing their oil or selling their oil,” Ereli told Al Jazeera.

“Even if they ran out of oil, they have ways to survive a very tough blockade and sanctions regime that, frankly, I think will outlast Trump’s patience and the patience of the American people,” he said.

“Remember, this isn’t just about moving soldiers and ships and planes around on a map. There’s politics involved here in the United States,” he added.

“Trump is nothing if not attuned to the political winds. And for that reason, I think that you’ve got this Iran strategy on the one hand that runs up against an electoral strategy on another hand, and therefore, the question is, which one is going to give?”

Can Iran store the oil the US is blockading in the meantime?

Iran’s domestic refineries have a capacity of 2.6 million bpd, according to consultancy FGE Energy. Its oil and gas production facilities are concentrated in southwestern provinces: Khuzestan for oil and Bushehr for gas and condensate from the South Pars gasfield.

Iran is also the third-largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC) and exports 90 percent of its crude oil via Kharg Island for shipping through the Strait of Hormuz.

The US naval blockade has begun affecting the country’s storage capacity, according to TankerTrackers, the maritime intelligence agency. The blockade means Iran has to store more oil, and space could become tight.

TankerTrackers said that on Kharg Island, to prepare for the possibility of running out of oil storage space, Iran has brought an old tanker named NASHA (9079107) out of retirement.

“She’s a 30yo [year old] VLCC [Very Large Crude Carrier] that’s been anchored empty for the past few years; currently spending 4 days on a trip that should take 1.5-2 days,” TankerTrackers said in a post on X, suggesting that the tanker is being used to store oil. It is unclear if the ship has a heading or course.

Can Iran continue to earn revenues from oil?

Yes, analysts say that for a few months, Iran can continue to earn revenue from oil which is already in transit at sea.

Kenneth Katzman, former Iran analyst at the Congressional Research Service in Washington, DC, said Iran is not exporting new oil amid the US blockade of Iranian ports, but Tehran has between 160 million and 170 million barrels of oil “afloat” on ships around the world currently.

Those supplies, which transited the Strait of Hormuz before the US blockade was imposed, are on board hundreds of tankers and “waiting to be delivered”, Katzman told Al Jazeera.

Katzman said he had been informed by an Iranian professor that, based on those supplies, Tehran could have revenue flows that can last until August despite the US naval blockade.

“Which is a long time. Does President Trump have until August? Probably not,” he said.

“He’s probably going to have to look at kinetic escalation if he wants to bring this to the conclusion that he wants, or he’s going to have to accept less than the deal he ideally wants,” he said.

Iranian ships will still have to avoid US naval ships on the open ocean, as the US Navy has also recently intercepted ships carrying Iranian cargoes.

On Wednesday this week, for example, the US military intercepted at least three Iranian-flagged tankers in ‌Asian waters, Reuters reported, and was said to be redirecting them away from their positions near India, Malaysia and Sri Lanka.

How else can Iran earn revenue?

Besides oil revenue, Iran is also currently receiving revenue from a “toll booth” system that the country imposed on the Strait of Hormuz in March.

On Thursday, Iran’s deputy parliament speaker Hamidreza Haji-Babaei said Tehran’s central bank had received the first revenues from tolls imposed since the start of the war, according to the semiofficial Tasnim news agency. It is unclear how much that toll revenue is.

Iranian politician Alaeddin Boroujerdi told the United Kingdom-based, Farsi-language satellite TV channel Iran International in March that the country has been charging some vessels as much as $2m each to pass through the strait.

According to Lloyd’s List, the shipping news outlet, at least two vessels that have transited the strait so far have paid fees in yuan, China’s currency. Lloyd’s List reported that one “transit was brokered by a Chinese maritime services company acting as an intermediary, which also handled the payment to Iranian authorities”. It is, however, not clear how much the vessels paid.

How resilient is Iran’s leadership?

In recent days, while pressuring Iran to negotiate a ceasefire deal, US President Donald Trump has claimed that Iranians are “having a very hard time figuring out who their leader is”, alleging that there is “crazy” infighting between “moderates” and “hardliners” in Tehran.

But the country’s officials have insisted that Iran’s government is united.

Mohammad Reza Aref, Iran’s first vice president, said on Thursday: “Our political diversity is our democracy, yet in times of peril, we are a ‘Single Hand’ under one flag. To protect our soil and dignity, we transcend all labels. We are one soul, one nation.”

Foreign Minister Abbas Araghchi also dismissed allegations that the Iranian military may be at odds with the political leadership.

“The failure of Israel’s terrorist killings is reflected in how Iran’s state institutions continue to act with unity, purpose, and discipline,” he wrote on X, referring to the assassinations of Iranian political and military figures Israel has carried out in recent weeks.

“The battlefield and diplomacy are fully coordinated fronts in the same war. Iranians are all united, more than ever before.”

One of the strongest messages of unity came from Iran’s President Masoud Pezeshkian.

“In Iran, there are no radicals or moderates,” he said on X.

“We are all Iranians and revolutionaries. With ironclad unity of nation and state and obedience to the Supreme Leader, we will make the aggressor regret.”

How strong is Iran militarily?

Iran has demonstrated considerable military resilience in the face of weeks of US-Israeli strikes through its use of asymmetric warfare.

This includes the use of guerrilla tactics, cyberattacks, arming and supporting proxy armed groups and other indirect tools.

During its war with the US and Israel, Iran has targeted energy infrastructure in Israel and across the Gulf, threatened to target banking institutions and targeted US data centres of technology companies such as Amazon in the United Arab Emirates and Bahrain.

Iran has also blocked the Strait of Hormuz and reportedly placed mines in the strait to disrupt shipping, sending global oil prices soaring.

Since the US began its naval blockade of Iranian ports in mid-April, Iranian officials have repeatedly promised that their country will defend itself and respond to any US attack.

Earlier this week, after the US military said it had seized an Iranian vessel and ordered dozens of others to turn around, Iran also retaliated by capturing foreign commercial vessels around the Hormuz Strait, which it said violated naval regulations.

Ereli, the former US ambassador, told Al Jazeera that Iran and the IRGC have “revolutionary fervour”, which means they can “survive”. “They can tolerate pain for a lot longer than I think most American decision makers and planners calculate,” Ereli said.

Ereli said it was unknown how long Tehran could last under “siege conditions” imposed by the US, but probably a lot longer than the US anticipates.

“I think they can go a lot longer, especially than most people imagine, and especially when it comes to kneeling to the Americans,” Ereli said.

“There’s a level of pride and survival. They’re at war with us, and for them it’s a war of necessity. They’ve got to survive,” he added.

Jump in prices comes as Donald Trump says vessels will need permission of US Navy to transit key waterway.

Oil prices have jumped on heightened tensions between the United States and Iran in the Strait of Hormuz following Washington and Tehran’s tit-for-tat captures of commercial vessels.

Brent crude, the international benchmark, topped $106 per barrel early on Friday morning as Washington and Tehran stepped up their confrontation over the key maritime route for transporting the world’s energy.

Brent stood at $106.80 as of 01:00 GMT, up nearly 5 percent from its closing price on Wednesday, when it surpassed $100 per barrel for the first time in two weeks.

US stocks fell overnight, with the benchmark S&P 500 index dipping 0.41 percent and the tech-heavy Nasdaq Composite dropping 0.89 percent.

Shipping in the Strait of Hormuz, which normally carries about one-fifth of the world’s supply of oil and natural gas, remains at a standstill as Iran continues to demand the right to decide which vessels may pass and the US blocks Iran’s maritime trade.

US President Donald Trump said in a Truth Social post on Thursday that he had ordered the US Navy to destroy any Iranian boats laying mines in the strait, shortly after the Pentagon announced that it had seized a tanker carrying sanctioned Iranian oil for the second time in less than a week.

Trump also appeared to expand the scope of the US naval blockade beyond Iranian ports, writing on Truth Social that no ship “can enter or leave” the strait without the approval of the US Navy.

“It is ‘Sealed up Tight,’ until such time as Iran is able to make a DEAL!!!” Trump said.

Trump’s threats came a day after Iran’s Islamic Revolutionary Guard Corps announced the capture of two foreign cargo ships in the waterway.

The IRGC said it had seized the Panamanian-flagged MSC Francesca and Greek-owned Epaminondas after the vessels had endangered maritime security “by operating without the necessary permits and tampering with navigation systems”.

The Greek Maritime Affairs and Insular Policy Ministry has denied that the Epaminondas was captured and said the vessel remains under the control of its captain.

Only nine commercial vessels transited the strait on Wednesday, compared with seven on Tuesday and 15 on Monday, according to maritime intelligence platform Windward.

Before the US and Israel launched their war against Iran on February 28, the waterway saw an average of 129 transits each day, according to United Nations Trade and Development.

EXPLAINER

President Trump said the US would extend the ceasefire until Iran presents a proposal and talks are concluded, but a naval blockade of its ports continues.

President Donald Trump said the United States is extending the ceasefire until Tehran submits its latest proposal with conditions for ending the war, and until negotiations conclude, keeping diplomacy open while maintaining pressure on Iran.

However, Trump said the US naval blockade on Iran would remain. Iran has insisted that the blockade represents a violation of the ceasefire, and has said it will not negotiate under the “shadow of threats” or while the blockade remains in place, underscoring the fragile and uncertain path to talks.

Meanwhile, violence continues across the region, with Israeli settlers killing two people, including a child, in the occupied West Bank, and Israeli strikes in southern Lebanon wounding civilians and damaging homes despite a 10-day ceasefire.

In Iran

• The Islamic Revolutionary Guard Corps (IRGC) said oil production across the Middle East could be targeted if attacks were launched from Gulf neighbours’ territory.
• The US is continuing its naval blockade of Iranian ports despite the truce, a move Iran says undermines the ceasefire.
• An adviser to Iran’s parliamentary speaker said the ceasefire extension could be a “ploy to buy time” for potential military escalation.
• Foreign Minister Abbas Araghchi described the US naval blockade as an “act of war” and a violation of the truce.

War diplomacy

• Tehran open to diplomacy: Reporting from Tehran, Al Jazeera’s Almigdad Alruhaid said there was no official response to Trump’s ceasefire extension, but officials signalled openness to talks. The US blockade of the Strait of Hormuz is seen as a violation of the truce, with commanders saying forces are fully prepared to respond to any escalation.
• US sanctions widened: The US imposed new sanctions linked to Iran’s weapons programmes, while the European Union is moving to expand its own measures.
• Talks planned in Washington, DC: The US is set to host ambassador-level negotiations between Israel and Lebanon, as Lebanese Prime Minister Nawaf Salam pushes for a full Israeli withdrawal from the country’s territory as Beirut’s main objective.

In the Gulf

• Trump said a potential currency swap with the United Arab Emirates is “under consideration”, adding Washington would support the Gulf ally if needed, after reports the idea was raised with US officials amid concerns the war could strain the UAE’s economy.

In the US

• The US president said he was extending a ceasefire with Iran to give more time for negotiations, but would maintain the naval blockade of Iranian ports.
• Reporting from the White House, Al Jazeera’s Alan Fisher said Trump has shifted between conciliatory and hardline rhetoric, linking the blockade of the Strait of Hormuz to forcing Iran to negotiate, while warning of military action if negotiations fail.
• The mixed messaging has unsettled markets, but some analysts argue the strategy shows calculated pressure and a willingness to wait for Iran’s response.

In Israel

• Israeli Prime Minister Benjamin Netanyahu said the country has been strengthened by its campaigns against Iran and its allies, claiming joint efforts with the US weakened Tehran’s capabilities and boosted Israel’s regional position, opening the door to new alliances.

In Lebanon

• Prime Minister Salam said on Tuesday that Lebanon needed $587m to address the conflict’s ongoing humanitarian fallout amid a fragile ceasefire between Israel and Hezbollah.
• Tensions remain high as Israel and Hezbollah accuse each other of breaching the truce. Israel said rockets were fired at its troops in southern Lebanon and that it responded with strikes, while Hezbollah said its attacks were retaliation for Israeli shelling and ongoing strikes on Lebanese areas.

Oil and global economy

• Shipping through the Strait of Hormuz remains severely limited, raising concerns over global oil flows.

Morbi, India – For seven years, Pradeep Kumar would walk into the ceramics factory in western India at 9am, load raw materials – clay, quartz and sand – into the kiln, and spend the day around the heat and dust of the furnaces.

He handled the clay at different stages, sometimes feeding it into machines, sometimes moving semi-processed pieces towards firing. The work was repetitive and demanding, with no protective gear, such as gloves and masks, against the high temperatures.

“It would be very challenging in the summers since the heat would be at its peak,” he told Al Jazeera.

But on March 15, he lost his job – not because of anything he or the company behind his factory had done, but because the United States and Israel attacked Iran, triggering another war in the Middle East and a global fuel crisis.

Barely two weeks after the war began, the ceramics company where he worked shut down due to a shortage of propane and natural gas. The company, in Morbi in Gujarat state – like all of its peers in the ceramics industry – depends on these critical ingredients.

Morbi is the centre of India’s ceramics industry that employs more than 400,000 people. More than half of these workers, like Kumar, are migrants from poorer Indian states like Uttar Pradesh and Bihar.

Five days after Kumar lost his job, the 29-year-old took his wife and their three children back to their home in Uttar Pradesh’s Hardoi district.

“I am here until every other migrant worker who came back home with us goes back,” he told Al Jazeera.

“We don’t want to suffer like dogs, like we did during the COVID-19 pandemic,” he added, referring to the 2020 and 2021 exodus of migrant workers from India’s more industrialised western states to the poorer east, with millions of starving families, including children, walking on foot for days and sometimes weeks to reach their homes amid a coronavirus lockdown.

About 450 of 600 companies shut

With more than 600 companies, Morbi produces about 80 percent of India’s ceramics in the form of tiles, toilets, bathtubs and wash basins. But at least 450 of those companies have been forced to shut down as a standoff on the Strait of Hormuz, a lifeline for India’s gas imports, continues.

Meanwhile, the war continues, with the US on Sunday capturing an Iranian cargo vessel, even as Washington says it is willing to hold another round of talks with Tehran in Pakistan to reach a deal. Tehran has refused to commit to peace talks after its ship was seized.

The developments came as a fragile ceasefire agreed by Iran and the US after a month of fighting expires on Wednesday. But a re-escalation in hostilities has seen Iran shutting down Hormuz for traffic, disrupting global fuel supplies and raising oil prices.

“All manufacturing units in Morbi rely on propane and natural gas to fire kilns at high temperatures. While propane is supplied by private companies, natural gas is provided by the state to those with connections. Around 60 percent of manufacturers use propane because it is comparatively cheaper,” Siddharth Bopaliya, a 27-year-old third-generation manufacturer and trader in Morbi, told Al Jazeera.

Manoj Arvadiya, president of the Morbi Ceramic Manufacturers Association, said they had shut down the units till April 15, hoping that the Middle East crisis would be resolved by then.

“But even today, only around 100 units have opened, and most have still not begun the manufacturing process. For at least another 15 days, it is likely to remain the same,” he told Al Jazeera.

Arvadiya said the closure has impacted 200,000 workers, with more than a quarter of them forced to go back to their homes in other states.

India’s ceramic industry is valued at $6bn.

“About 25 percent of Morbi’s ceramics are exported to countries in the Middle East, Africa and Europe, with a net worth of $1.5bn. But exports are now delayed and, in some cases, completely halted, especially to Middle Eastern countries, due to the production slowdown over the past month,” Arvadiya told Al Jazeera.

Factories that rely on propane remain shut in Morbi. Though natural gas is mostly available, many units have not made the switch yet, as new connections are being priced at 93 rupees a kilo, while existing users receive it at about 70 rupees.

Khushiram Sapariya, a manufacturer of washbasins who relies on propane, said he will wait this month before deciding on reopening his factory.

“Because then I have to call hundreds of staff who have gone to their homes, and I want to be sure before taking their responsibility,” he said.

Returned home with ‘Morbi disease’

Among the workers who left Morbi last month is 27-year-old Ankur Singh.

“The shutdown of my company did not send me back alone, but with a Morbi disease – silicosis. I would often have fever and cough but kept ignoring it, until I came back to my hometown near Patna in Bihar and found after a check-up that it was silicosis,” he told Al Jazeera.

Silicosis is an incurable lung disease caused by inhalation of silica dust found in rock, sand, quartz and other building materials. One of the oldest occupational diseases in the world, it kills thousands of people every year.

Gujarat-based labour rights activist Chirag Chavda says the disease is “widespread in Morbi because workers are routinely exposed to fine silica dust generated during ceramic production”.

“Even those not directly involved in moulding or kiln work often inhale the particles due to poor ventilation and prolonged exposure across factory spaces,” he told Al Jazeera.

Chavda said most ceramic companies do not follow the government regulations regarding the safety of workers.

Harish Zala, 40, had worked in different ceramic companies in Morbi for two decades before he got silicosis two years ago. He said he received no help from his employer, who allegedly abused and threatened his father when he visited the company after the diagnosis.

“Every year, at least one labourer dies of silicosis in each company, while several get detected for silicosis,” Zala told Al Jazeera. “Some like me get lucky and survive, but have no choice but to quit the job immediately.”

Zala said many companies do not provide the workers with written proof of employment, such as appointment letters, salary slips, or identity cards. “This is done so that if a worker later demands labour rights or legal entitlements, they have no concrete evidence to prove that they were employed by the company.”

Chirag added that such workers are also denied social security under various Indian laws regarding salaries or pension funds, since doing so would establish proof of employment.

“As a result, even after working for years, workers are deprived of their labour rights due to a lack of evidence. This leaves employers with little to no legal accountability,” he said.

In Morbi, there are also migrants like Sushma Devi, 56, who did not go back to her home in West Bengal because the tile company her son works at has promised to continue giving them shelter and food as it waits for manufacturing to resume.

“I am here with a few more people because we did not want to spend money on travelling. Here, at least our ration is sorted,” she said as she walked with a bundle of dry twigs, wood and discarded plywood for the cooking.

“We step out to collect these every day to be able to cook our two-time meal,” said Devi. “I hope the kilns and manufacturing resume soon, but I also hope they don’t stop giving us rice and potatoes even if the kilns don’t start running anytime soon.”

Devi’s husband, Debendar, and their son Ankit live in a one-room set given to them by their company. The family has access to a common toilet for 10 families on one floor.

Kumar, meanwhile, is running out of his meagre savings and fears he could fall into a debt trap.

“Initially, we ate from whatever we had saved. But the house needed repair and we had to borrow 20,000 rupees ($214) from a relative, which we have no idea when or how we will repay,” he said, looking at the reworked roof of his brick house in Hardoi.