Recent reports have shed light on the intricate web of oil smuggling operations involving Iran, particularly highlighting the role of Hossein Shamkhani, the son of Ali Shamkhani, an advisor to Supreme Leader Ali Khamenei. According to a Bloomberg News report published on August 30, 2024, Hossein Shamkhani, operating under the alias 'Hector', is a senior executive at Milavous Group Ltd in Dubai, which has emerged as a significant distributor of smuggled Iranian oil. This group has reportedly generated billions in revenue from selling goods sourced from both Iran and Russia, indicating a deepening cooperation between Tehran and Moscow amid ongoing global sanctions [8a5a3ac3].
The United Against Nuclear Iran (UANI) reported on August 29 that Iranian oil is being transported by tankers registered under flags of other countries, with the Cook Islands alone registering 35 tankers for this purpose. This tactic complicates efforts by the U.S. and its allies to curb the illicit oil trade, especially as rising oil prices loom ahead of the upcoming presidential election [8a5a3ac3]. China continues to be the largest buyer of Iranian crude oil, further entrenching the economic ties between the two nations despite international sanctions [8a5a3ac3].
In the context of Iraq, illegal oil exports from the Kurdistan region have been a significant issue, with hundreds of oil trucks reportedly leaving the region daily for Turkey and Iran. These exports have raised concerns about potential violations of U.S. economic sanctions on Iran and have contributed to Iraq's inability to comply with OPEC production cuts. The Kurdistan Regional Government (KRG) has resorted to these illegal exports following the halting of official exports through the Iraq-Turkey pipeline due to a court ruling in March 2023. Local officials have noted a lack of transparency regarding the revenue generated from these exports, which are believed to primarily benefit political elites [287ee751].
As of June, Iraqi oil exports to the U.S. totaled 5.425 million barrels, reflecting a decline from previous months, which some analysts attribute to the illegal exports from Kurdistan [1ad254b9]. The KRG's actions, alongside Iran's smuggling operations, highlight the complex dynamics of oil trade in the region and the challenges faced by international efforts to enforce sanctions and regulate oil markets [287ee751][8a5a3ac3].