Iran Deploys Shadow Fleet in Persian Gulf to Evade US Naval Blockade
Iran is preparing to deploy a fleet of vessels in the Persian Gulf to circumvent the renewed US naval blockade on its ports. These operational preparations became evident immediately after the reimposition of American sanctions. Currently, 23 Iranian ships operating in the Strait of Hormuz are flying false flags, have turned off their transmitters, or are manipulating their activities to act as ghost ships forming a shadow fleet. Ten of these vessels are carrying oil cargoes, while the rest are empty. Seven large oil tankers from this fleet are anchored in the Indian Ocean, loaded with crude oil and awaiting buyers. These ships, which left the Strait of Hormuz during a recent three-week ceasefire, are now subject to renewed sanctions.
Iran has developed extensive experience in evading sanctions through a complex network of shell companies, secret oil cargo transfers, and opaque financial transactions. Most of the shadow fleet's oil is sold to China, which imports about 80% of Iran's oil despite US sanctions. One Iranian tanker was tracked taking a detour by loading crude oil at Khark Island, passing through the Basra oil terminal in Iraq, and continuing to China, illustrating Iran's typical methods of disguising the origin of its shipments.
Despite a temporary lifting of sanctions under previous agreements, Iran continued to use its shadow fleet to export approximately 50 million barrels of crude oil in June alone, with a peak export of about 10 million barrels in a single day last week. The first US naval blockade, from mid-April to mid-June, significantly restricted Iranian exports through the Strait of Hormuz.
Iran relies on oil sales for about half of its government revenue. The maritime restrictions have worsened the country's economic crisis, pushing average inflation to 50% annually, the highest since World War II, and food inflation above 100%. Approximately 90% of Iran's trade passes through the Persian Gulf waters, increasing the local economy's vulnerability to US naval blockades and driving Tehran's urgent need to break the siege.
