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Iran’s Revolutionary Guards Extend Control Over Tehran’s Oil Exports, Sources Say
Iran’s Islamic Revolutionary Guard Corps (IRGC) Commander-in-Chief Major General Hossein Salami reviews military equipment during an IRGC ground forces military drill in the Aras area, East Azerbaijan province, Iran, Oct. 17, 2022. Photo: IRGC/WANA (West Asia News Agency)/Handout via REUTERS
Iran’s Islamic Revolutionary Guard Corps (IRGC) have tightened their grip on the country’s oil industry and control up to half the exports that generate most of Tehran’s revenue and fund its proxies across the Middle East, according to Western officials, security sources, and Iranian insiders.
All aspects of the oil business have come under the growing influence of the Guards — an Iranian military force and internationally designated terrorist organization — from the shadow fleet of tankers that secretively ship sanctioned crude, to logistics and the front companies selling the oil, mostly to China, according to more than a dozen people interviewed by Reuters.
The extent of the IRGC’s control over oil exports has not previously been reported.
Despite tough Western sanctions designed to choke Iran’s energy industry, reimposed by former US President Donald Trump in 2018, Iran generates more than $50 billion a year in oil revenue, by far its largest source of foreign currency and its principal connection to the global economy.
Six specialists — Western officials and security experts as well as Iranian and trading sources — said the Guards control up to 50 percent of Iran’s oil exports, a sharp increase from about 20 percent three years ago. The sources declined to be identified due to the sensitivity of the matter.
Three of the estimates were based on intelligence documents about Iranian shipping while others derived their figures from monitoring shipping activity by tankers and companies linked to the IRGC. Reuters was unable to determine the exact extent of the IRGC’s control.
The IRGC’s growing domination of the oil industry adds to its influence in all areas of Iran’s economy and also makes it harder for Western sanctions to hit home — given the Guards are already designated as a terrorist organization by Washington.
Trump’s return to the White House in January, however, could mean tougher enforcement of sanctions on Iran’s oil industry. The country’s oil minister said Tehran is putting measures in place to deal with any restrictions, without giving details.
As part of their expansion in the industry, the Guards have muscled in on the territory of state institutions such as the National Iranian Oil Company (NIOC) and its NICO oil trading subsidiary, according to four of the sources.
When sanctions hit Iran’s oil exports years ago, the people running NIOC and the wider industry were specialized in oil rather than how to evade sanctions, added Richard Nephew, a former deputy special envoy for Iran at the US State Department.
“The IRGC guys were much, much better at smuggling, just terrible at oil field management, so they began to get a larger control of oil exports,” said Nephew, who is now a researcher at Columbia University.
The IRGC, NIOC, NICO, and Iran’s foreign ministry did not respond to requests for comment.
RISK APPETITE
The IRGC is a powerful political, military, and economic force with close ties to Supreme Leader Ayatollah Ali Khamenei.
The Guards exert influence in the Middle East through their overseas operations arm, the Quds Force, by providing money, weapons, technology, and training to terrorist allies Hezbollah in Lebanon, Hamas in Gaza, Yemen’s Houthis, and militias in Iraq.
While Israel has killed a number of senior IRGC commanders over the past year, the oil specialists in its ranks have been able to continue their operations, two Western and two Iranian sources said.
The Iranian government began allotting oil, instead of cash, to the IRGC and Quds Force around 2013, according to Nephew.
The government was under budgetary pressure then because it was struggling to export oil due to Western sanctions imposed over Iran’s nuclear program.
The IRGC proved adept at finding ways to sell oil even under sanctions pressure, said Nephew, who was actively involved in tracking Iranian oil activities then.
Iranian oil revenues hit $53 billion in 2023 compared with $54 billion in 2022, $37 billion in 2021, and $16 billion in 2020, according to estimates from the US government’s Energy Information Administration.
This year, Tehran’s oil output has topped 3.3 million barrels per day, the highest since 2018, according to OPEC figures, despite the Western sanctions.
China is Iran’s biggest buyer of oil, with most going to independent refineries, and the IRGC has created front companies to facilitate trade with buyers there, all the sources said.
Oil export revenues are split roughly evenly between the IRGC and NICO, said one source involved in Iranian oil sales to China. The IRGC sells oil at a $1-$2 barrel discount to prices offered by NICO because buyers take a bigger risk buying from the Guards, the person said.
“It depends on a buyer’s risk appetite, the higher ones will go for the IRGC, which the US designates as a terrorist group.”
Two Western sources estimated that the IRGC offered an even bigger discount, saying it was $5 per barrel on average but could be as much as $8.
The oil is allocated directly by the government to the IRGC and Quds Force. It’s then up to them to market and ship the oil — and work out a mechanism for disbursing the revenue, according to the sources and intelligence documents seen by Reuters.
NIOC gets a separate allocation.
CHINESE FRONT
One of the front companies used is China-based Haokun. Operated by former Chinese military officials, it remains an active conduit for IRGC oil sales into China, despite Washington hitting it with sanctions in 2022, two of the sources said.
The US Treasury said China Haokun Energy had bought millions of barrels of oil from the IRGC-Quds Force and was sanctioned for having “materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the IRGC-QF.”
In one oil transaction dated March 16, 2021 involving Haokun and parties including Turkish company Baslam Nakliyat — which is under US sanctions for its trading links to the IRGC — a payment was processed via US bank JP Morgan and Turkish lender Vakif Katilim, according to the intelligence documents.
The transaction took place before the companies were sanctioned. Reuters has no indication JP Morgan or Vakif Katilim were aware of the Iranian connection — highlighting the risks of companies getting inadvertently caught up in the shadow trade.
JP Morgan declined to comment. Vakif Katilim said in a statement: “Our bank performs its activities within the framework of national and international banking rules.”
Haokun declined to comment. Baslam did not respond to a request for comment.
‘GHOST FLEET’
Quds Force commander Qassem Soleimani, who was killed in a US strike in Baghdad in 2020, had set up a clandestine headquarters and inaugurated that year for the unit’s oil smuggling activities, initially staffed by former oil minister Rostam Ghasemi, according to the intelligence documents.
Reuters could not determine where all the oil money funneled through the IRGC goes. The IRGC headquarters and day-to-day operations has an annual budget of around $1 billion, according to assessments from two security sources tracking IRGC activities.
They estimated that the IRGC budget for Hezbollah was another $700 million a year.
“Exact figures remain undisclosed, as Hezbollah conceals the funds it receives. However, estimates are that its annual budget is approximately $700 million to $1 billion. Around 70 percent to 80 percent of this funding comes directly from Iran,” Shlomit Wagman, former director general of Israel’s Money Laundering and Terrorism Financing Prohibition Authority, said separately.
Hezbollah did not respond to a request for comment.
The former Secretary General of Hezbollah, Sayyed Hassan Nasrallah, who was killed in an Israeli airstrike, said Iran provided the group’s budget, including for salaries and weapons.
Iran’s main tanker operator NITC, which previously played a key role in exports, also now provides services to the IRGC.
It executes ship-to-ship transfers of Iranian oil onto vessels operated by the IRGC to ship crude into China, according to sources and ship-tracking data. Such transfers are common practice to help disguise the origin of the oil tankers carry.
NITC did not respond to a request for comment.
In August, Israel’s National Bureau for Counter Terror Financing, part of the country’s defense ministry, imposed sanctions on 18 tankers it said were involved in transporting oil belonging to the Quds Force.
In October, the US Treasury slapped sanctions on 17 separate tankers it said formed part of Iran’s “ghost fleet,” outside of NITC vessels. It followed up with sanctions on a further 18 tankers on Dec. 3.
The post Iran’s Revolutionary Guards Extend Control Over Tehran’s Oil Exports, Sources Say first appeared on Algemeiner.com.
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Israel Blocks Ramallah Meeting with Arab Ministers, Israeli Official Says
A closed Israeli military gate stands near Ramallah in the West Bank, February 18, 2025. Photo: REUTERS/Ammar Awad
Israel will not allow a planned meeting in the Palestinian administrative capital of Ramallah, in the West Bank, to go ahead, an Israeli official said on Saturday, after Arab ministers planning to attend were stopped from coming.
The move, days after Prime Minister Benjamin Netanyahu’s right-wing government announced one of the largest expansions of settlements in the West Bank in years, underlined escalating tensions over the issue of international recognition of a future Palestinian state.
Saturday’s meeting comes ahead of an international conference, co-chaired by France and Saudi Arabia, that is due to be held in New York on June 17-20 to discuss the issue of Palestinian statehood, which Israel fiercely opposes.
The delegation of senior Arab officials due to visit Ramallah – including the Jordanian, Egyptian, Saudi Arabian and Bahraini foreign ministers – postponed the visit after “Israel’s obstruction of it,” Jordan’s foreign ministry said in a statement, adding that the block was “a clear breach of Israel’s obligations as an occupying force.”
The ministers required Israeli consent to travel to the West Bank from Jordan.
An Israeli official said the ministers intended to take part in “a provocative meeting” to discuss promoting the establishment of a Palestinian state.
“Such a state would undoubtedly become a terrorist state in the heart of the land of Israel,” the official said. “Israel will not cooperate with such moves aimed at harming it and its security.”
A Saudi source told Reuters that Saudi Arabia’s Foreign Minister Prince Faisal bin Farhan Al-Saud had delayed a planned trip to the West Bank.
Israel has come under increasing pressure from the United Nations and European countries which favour a two-state solution to the Israeli-Palestinian conflict, under which an independent Palestinian state would exist alongside Israel.
French President Emmanuel Macron said on Friday that recognizing a Palestinian state was not only a “moral duty but a political necessity.”
Palestinians want the West Bank territory, which was seized by Israel in the 1967 Middle East war, as the core of a future state along with Gaza and East Jerusalem.
But the area is now criss-crossed with settlements that have squeezed some 3 million Palestinians into pockets increasingly cut off from each other though a network of military checkpoints.
Defense Minister Israel Katz said the announcement this week of 22 new settlements in the West Bank was an “historic moment” for settlements and “a clear message to Macron.” He said recognition of a Palestinian state would be “thrown into the dustbin of history.”
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Gaza Aid Supplies Hit by Looting as Hamas Ceasefire Response Awaited
Palestinians carry aid supplies which they received from the U.S.-backed Gaza Humanitarian Foundation, in the central Gaza Strip, May 29, 2025. REUTERS/Ramadan Abed
Armed men hijacked dozens of aid trucks entering the Gaza Strip overnight and hundreds of desperate Palestinians joined in to take supplies, local aid groups said on Saturday as officials waited for Hamas to respond to the latest ceasefire proposals.
The incident was the latest in a series that has underscored the shaky security situation hampering the delivery of aid into Gaza, following the easing of a weeks-long Israeli blockade earlier this month.
US President Donald Trump said on Friday he believed a ceasefire agreement was close but Hamas has said it is still studying the latest proposals from his special Middle East envoy Steve Witkoff. The White House said on Thursday that Israel had agreed to the proposals.
The proposals would see a 60-day truce and the exchange of 28 of the 58 hostages still held in Gaza for more than 1,200 Palestinian prisoners and detainees, along with the entry of humanitarian aid into the enclave.
On Saturday, the Israeli military, which relaunched its air and ground campaign in March following a two-month truce, said it was continuing to hit targets in Gaza, including sniper posts and had killed what it said was the head of a Hamas weapons manufacturing site.
The campaign has cleared large areas along the boundaries of the Gaza Strip, squeezing the population of more than 2 million into an ever narrower section along the coast and around the southern city of Khan Younis.
Israel imposed a blockade on all supplies entering the enclave at the beginning of March in an effort to weaken Hamas and has found itself under increasing pressure from an international community shocked by the increasingly desperate humanitarian situation the blockade has created.
The United Nations said on Friday the situation in Gaza is the worst since the start of the war began 19 months ago, with the entire population facing the risk of famine despite a resumption of limited aid deliveries earlier this month.
Israel has been allowing a limited number of trucks from the World Food Program and other international groups to bring flour to bakeries in Gaza but deliveries have been hampered by repeated incidents of looting.
At the same time, a separate system, run by a US-backed group called the Gaza Humanitarian Foundation has been delivering meals and food packages at three designated distribution sites.
However, aid groups have refused to cooperate with the GHF, which they say is not neutral, and say the amount of aid allowed in falls far short of the needs of a population at risk of famine.
“The aid that’s being sent now makes a mockery of the mass tragedy unfolding under our watch,” Philippe Lazzarini, head of the main U.N. relief organization for Palestinians, said in a message on the social media platform X.
NO BREAD IN WEEKS
The World Food Program said it brought 77 trucks carrying flour into Gaza overnight and early on Saturday and all of them were stopped on the way, with food taken by hungry people.
“After nearly 80 days of a total blockade, communities are starving and they are no longer willing to watch food pass them by,” it said in a statement.
Amjad Al-Shawa, head of an umbrella group representing Palestinian aid groups, said the dire situation was being exploited by armed groups which were attacking some of the aid convoys.
He said hundreds more trucks were needed and accused Israel of a “systematic policy of starvation.”
Overnight on Saturday, he said trucks had been stopped by armed groups near Khan Younis as they were headed towards a World Food Programme warehouse in Deir Al-Balah in central Gaza and hundreds of desperate people had carried off supplies.
“We could understand that some are driven by hunger and starvation, some may not have eaten bread in several weeks, but we can’t understand armed looting, and it is not acceptable at all,” he said.
Israel says it is facilitating aid deliveries, pointing to its endorsement of the new GHF distribution centers and its consent for other aid trucks to enter Gaza.
Instead it accuses Hamas of stealing supplies intended for civilians and using them to entrench its hold on Gaza, which it had been running since 2007.
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Hamas Seeks Changes in US Gaza Proposal; Witkoff Calls Response ‘Unacceptable’
US President Donald Trump’s Middle East envoy-designate Steve Witkoff gives a speech at the inaugural parade inside Capital One Arena on the inauguration day of Trump’s second presidential term, in Washington, DC, Jan. 20, 2025. Photo: REUTERS/Carlos Barria
Hamas said on Saturday it was seeking amendments to a US-backed proposal for a temporary ceasefire with Israel in Gaza, but President Donald Trump’s envoy rejected the group’s response as “totally unacceptable.”
The Palestinian terrorist group said it was willing to release 10 living hostages and hand over the bodies of 18 dead in exchange for Palestinian prisoners in Israeli prisons. But Hamas reiterated demands for an end to the war and withdrawal of Israeli troops from Gaza, conditions Israel has rejected.
A Hamas official described the group’s response to the proposals from Trump’s special Middle East envoy Steve Witkoff as “positive” but said it was seeking some amendments. The official did not elaborate on the changes being sought by the group.
“This response aims to achieve a permanent ceasefire, a complete withdrawal from the Gaza Strip, and to ensure the flow of humanitarian aid to our people in the Strip,” Hamas said in a statement.
The proposals would see a 60-day truce and the exchange of 28 of the 58 hostages still held in Gaza for more than 1,200 Palestinian prisoners and detainees, along with the entry of humanitarian aid into the enclave.
A Palestinian official familiar with the talks told Reuters that among amendments Hamas is seeking is the release of the hostages in three phases over the 60-day truce and more aid distribution in different areas. Hamas also wants guarantees the deal will lead to a permanent ceasefire, the official said.
There was no immediate response from Israeli Prime Minister Benjamin Netanyahu’s office to the Hamas statement.
Israel has previously rejected Hamas’ conditions, instead demanding the complete disarmament of the group and its dismantling as a military and governing force, along with the return of all 58 remaining hostages.
Trump said on Friday he believed a ceasefire agreement was close after the latest proposals, and the White House said on Thursday that Israel had agreed to the terms.
Saying he had received Hamas’ response, Witkoff wrote in a posting on X: “It is totally unacceptable and only takes us backward. Hamas should accept the framework proposal we put forward as the basis for proximity talks, which we can begin immediately this coming week.”
On Saturday, the Israeli military said it had killed Mohammad Sinwar, Hamas’ Gaza chief on May 13, confirming what Netanyahu said earlier this week.
Sinwar, the younger brother of Yahya Sinwar, the group’s deceased leader and mastermind of the October 2023 attack on Israel, was the target of an Israeli strike on a hospital in southern Gaza. Hamas has neither confirmed nor denied his death.
The Israeli military, which relaunched its air and ground campaign in March following a two-month truce, said on Saturday it was continuing to hit targets in Gaza, including sniper posts and had killed what it said was the head of a Hamas weapons manufacturing site.
The campaign has cleared large areas along the boundaries of the Gaza Strip, squeezing the population of more than 2 million into an ever narrower section along the coast and around the southern city of Khan Younis.
Israel imposed a blockade on all supplies entering the enclave at the beginning of March in an effort to weaken Hamas and has found itself under increasing pressure from an international community shocked by the desperate humanitarian situation the blockade has created.
On Saturday, aid groups said dozens of World Food Program trucks carrying flour to Gaza bakeries had been hijacked by armed groups and subsequently looted by people desperate for food after weeks of mounting hunger.
“After nearly 80 days of a total blockade, communities are starving and they are no longer willing to watch food pass them by,” the WFP said in a statement.
‘A MOCKERY’
The incident was the latest in a series that has underscored the shaky security situation hampering the delivery of aid into Gaza, following the easing of a weeks-long Israeli blockade earlier this month.
The United Nations said on Friday the situation in Gaza is the worst since the start of the war 19 months ago, with the entire population facing the risk of famine despite a resumption of limited aid deliveries earlier this month.
“The aid that’s being sent now makes a mockery of the mass tragedy unfolding under our watch,” Philippe Lazzarini, head of the main U.N. relief organization for Palestinians, said in a message on X.
Israel has been allowing a limited number of trucks from the World Food Program and other international groups to bring flour to bakeries in Gaza but deliveries have been hampered by repeated incidents of looting.
A separate system, run by a US-backed group called the Gaza Humanitarian Foundation, has been delivering meals and food packages at three designated distribution sites.
However, aid groups have refused to cooperate with the GHF, which they say is not neutral, and say the amount of aid allowed in falls far short of the needs of a population at risk of famine.
Amjad Al-Shawa, head of an umbrella group representing Palestinian aid groups, said the dire situation was being exploited by armed groups which were attacking some of the aid convoys.
He said hundreds more trucks were needed and accused Israel of a “systematic policy of starvation.”
Israel denies operating a policy of starvation and says it is facilitating aid deliveries, pointing to its endorsement of the new GHF distribution centers and its consent for other aid trucks to enter Gaza.
Instead it accuses Hamas of stealing supplies intended for civilians and using them to entrench its hold on Gaza, which it had been running since 2007.
Hamas denies looting supplies and has executed a number of suspected looters.
The post Hamas Seeks Changes in US Gaza Proposal; Witkoff Calls Response ‘Unacceptable’ first appeared on Algemeiner.com.