Iranian Oil Shipping Network Linked to Sanctioned Figure After Ship Grounding

Recent developments have brought renewed attention to Iranian oil trade networks following reports that a tanker reported by Iranian media as grounded in the Strait of Hormuz is connected to Mohammad Hossein Shamkhani, a key figure in Iranian oil shipping under extensive Western sanctions. The United States and Europe accuse him of operating a secret network exporting Iranian and Russian oil generating billions of dollars.

The tanker tracking service "Tanker" indicates the vessel has remained stationary at the same location since March, highlighting Shamkhani’s alleged role in managing the so-called "shadow fleet" used to circumvent Western sanctions.

"Tanker," a maritime navigation monitoring service, identified the ship as "Arista," flying the flag of the Comoros Islands. The service considers it part of a shipping network controlled by Mohammad Hossein Shamkhani, who is under American, European, and British sanctions due to his involvement in oil trading.

Mohammad Hossein Shamkhani is recognized as a prominent Iranian businessman in the oil shipping sector and has faced multiple Western sanctions in recent years. He is the son of the late Ali Shamkhani, former senior political advisor to Iran’s Supreme Leader Ayatollah Ali Khamenei and former Secretary of the Supreme National Security Council for ten years until 2023. Ali Shamkhani was the second-longest serving official in that position since 1979, after former Iranian President Hassan Rouhani.

Reports state that Ali Shamkhani was killed in the initial US-Israeli strikes targeting Tehran on February 28, which ignited conflict with Iran and also resulted in the death of Supreme Leader Ali Khamenei. Funeral ceremonies for Khamenei are set to begin today.

In March, the Organized Crime and Corruption Reporting Project (OCCRP), based in Sarajevo, revealed an investigation showing that Mohammad Hossein Shamkhani and his brother used aliases and "golden passports" issued by Caribbean countries to purchase real estate portfolios.

The US Treasury Department describes Shamkhani’s shipping empire as part of a broad network smuggling Iranian and Russian oil. It confirms that the "Arista" tanker, registered in Comoros and grounded in the Strait of Hormuz, is included in this network.

According to the Treasury, Shamkhani’s network relies on shell companies to buy Iranian and Russian oil, falsifying shipping documents to conceal shipment origins. The network frequently transfers oil cargoes between vessels and sells shipments to buyers who pay through front companies to obscure money trails. Profits are then moved through hedge funds and other money laundering mechanisms.

The Treasury states the network operates a fleet comprising crude oil tankers, petroleum product carriers, and liquefied petroleum gas vessels, generating billions of dollars for the Iranian and Russian regimes.

The European Commission reports that Shamkhani uses the company "Milafos Group Limited" to blend Russian crude oil with other petroleum products and reclassify it before export, aiming to hide the shipments’ origins.

Mohammad Hossein Shamkhani has not publicly responded to these allegations.

The United States imposed its first sanctions on Shamkhani in July last year as part of Iran-related measures, expanding these in April to include his commercial network. US Treasury Secretary Scott Bessent stated the department is "acting decisively under the economic wrath program by targeting elites linked to the Iranian regime, including the Shamkhani family, who seek profits at the expense of the Iranian people."

The US Treasury added that Shamkhani "heads an empire selling Iranian and Russian oil worth billions, enriching a family connected to the highest levels of the Iranian regime at the expense of the Iranian people."

The European Union also lists Shamkhani under sanctions, describing him as "a businessman active in Russian oil trade and a key player in the so-called Russian shadow fleet." The EU notes that the Russian "shadow fleet" includes hundreds of aging oil tankers used by Moscow to export crude oil and fuel while evading Western sanctions imposed since the war in Ukraine began in 2022.

In August last year, the United Kingdom imposed sanctions on Shamkhani, including asset freezes, prohibiting him from managing companies, and travel bans. British Middle East Minister Hamish Falconer stated the sanctions target individuals working for Iran who contribute to undermining stability in the Middle East and global security.

Falconer added that Tehran’s reliance on revenues from its affiliated trade networks enables it to fund activities London considers destabilizing, including supporting its allies and proxies in the region and facilitating threats to security on British soil.