Shadow Fleet of Iran’s Revolutionary Guards, A New Challenge for Global Sanctions

Iran’s Revolutionary Guards Corps (IRGC) has expanded its control over the country’s oil exports, now dominating nearly half of this vital industry. Despite tough Western sanctions, the IRGC uses a clandestine network of tankers and front companies to export oil, primarily to China. These exports, which generate more than $50 billion annually, are Tehran’s main source of foreign revenue.

Sources reveal that the IRGC’s influence in the oil sector grew significantly in recent years, overshadowing state entities like the National Iranian Oil Company. By offering discounted prices, the IRGC has attracted high-risk buyers, undermining international efforts to curb Iran’s oil trade.

While the Guards’ control funds regional proxies such as Hezbollah, it also complicates future enforcement of sanctions. The use of front companies like China-based Haokun highlights the sophisticated methods employed to bypass international scrutiny.

As Iran’s oil production reaches its highest levels since 2018, the shadow fleet remains a critical component of its economic resilience amidst ongoing geopolitical tensions.