Despite strict sanctions, Iran earning Rs 84718336900 every year from…, big worry for US, Donald Trump may…

Iran and its network of allies have reportedly earned over $1 billion through an oil smuggling operation over the past year. In Indian currency, this amounts to Rs 84,71,83,36,900. This network has grown in Iraq since Prime Minister Mohammed Shia Al-Sudani assumed office in 2022. The operation exploits Iraq’s government policy, which allocates heavily subsidized fuel oil to asphalt plants.
The network comprises companies, groups, and individuals from Iraq, Iran, and Gulf countries. It takes advantage of these allocations, diverting the fuel for export and generating significant revenues for Tehran.
Iran’s Smuggling Network In Action
According to the Navbharat Times report on this scheme, 500,000 to 750,000 metric tons of heavy fuel oil (HFO) are removed from plants each month and exported mostly to Asian markets. This quantity equates to 3.4 million to 5 million barrels of oil. The fuel often includes high-sulfur fuel oil (HSFO).
Since Al-Sudani came to power, the scale of fuel oil smuggling and the involvement of multiple entities within Iraq in the illicit trade have not been publicly reported before. Despite the growing evidence, both Iraqi and Iranian governments have remained silent, offering no official statements on the matter.
Iran’s Influence in Iraq
Iran considers Iraq a crucial economic ally and wields significant military, political, and economic influence in the country through powerful Shia militias and Tehran-backed political parties. According to media reports, Iran uses exports to secure hard currency from Iraq and circumvents U.S. sanctions through the Iraqi banking system.
Trump’s Potential Policies Could Increase Tensions
For years, Baghdad has balanced its role as a partner to both Washington and Tehran. However, there is concern that Donald Trump, who is expected to take a tougher stance on Iran during his new presidential term, could complicate this dynamic. Such policies might also bring Iran’s growing activities in neighboring Iraq under greater scrutiny.
Iran’s Dual Oil Smuggling Strategies
Sources outlined two primary methods used by the smuggling network in which Iranian fuel is mixed with Iraqi fuel to make it appear as Iraqi-origin before export. This helps Iran evade strict U.S. sanctions on energy exports and subsidized fuel meant for Iraqi consumption is exported with forged documents concealing its origin.
This intricate network demonstrates Iran’s ability to bypass sanctions and capitalize on regional economic and political vulnerabilities, but it also raises questions about how long such activities can go unchecked.
Israel’s war in Gaza and airstrikes in Iran had also impacted oil demand and its prices. Now it will be interesting to see how Iran’s Supreme leader Ayatollah Ali Khamenei and Donald Trump will sort out their differences and its impact on oil import and export.