Iran Uses Oil Tankers Disguised as Iraqi Ships to Dodge US Naval Blockade

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WASHINGTON/TEHRAN — Iran has developed a sophisticated $800 million oil smuggling scheme that disguises Iranian tankers as Iraqi vessels, using falsified location data and fraudulent registries to slip through the U.S. naval blockade, according to maritime intelligence reports .

Windward AI, a maritime artificial intelligence firm, has identified a “cluster” of 10 U.S.-sanctioned tankers falsifying their Automatic Identification System (AIS) location data to falsely appear anchored off the coast of Basrah, Iraq — while secretly loading sanctioned oil at Iranian ports .

🚢 How the Deception Works

The smuggling operation relies on a technique known as “spoofing” — manipulating digital signals to create what analysts call a “digital alibi” .

The deception method includes:

• Falsified AIS signals: Tankers broadcast fake destination messages indicating Iraqi ports while covertly sailing to Iran
• Fraudulent registries: Vessels use false flags from countries including Curaçao and Malawi
• Erratic voyage trails: Ships display irregular patterns to suggest loading at the Iraqi port of Khor Al Zubair
• Post-loading re-emergence: Once loaded, vessels reappear on AIS to claim a legitimate Iraqi origin for the cargo

“By broadcasting fake destination messages to Iraqi ports, the tankers appear to be in Iraqi waters while covertly sailing to Iran to load sanctioned oil.”
— Windward AI

🛢️ Four VLCCs at the Center of the Scheme

Analysts have identified four Very Large Crude Carriers (VLCCs) actively participating in the deception operation :

Each VLCC can hold approximately 2 million barrels of crude oil. Combined, the four vessels alone can transport about 8 million barrels — worth an estimated $800 million at $100 per barrel .

🚧 The Blockade: Enforcement and Evasion

The U.S. naval blockade of Iranian ports began on April 13 as part of a broader campaign to pressure Tehran into renegotiating its nuclear program . The blockade has unfolded in stages, with U.S. Central Command (CENTCOM) reporting that 37 vessels have been redirected since the operation began .

Blockade impact metrics:

• Iranian oil loadings and exports reduced by more than half
• More than two dozen tankers confined west of the Strait of Hormuz
• U.S. has interdicted vessels as far as the Indian Ocean, including the M/V Sevan in the Arabian Sea

Despite U.S. enforcement efforts, a significant volume of Iranian crude continues to reach buyers. Energy analytics firm Vortexa reported that in the first nine days of the blockade operation, up to 34 tankers transited the U.S. blockade line — several sailing “dark” with their location transponders turned off .

🔗 The Broader ‘Shadow Fleet’ Network

The tanker deception is part of a much larger Iranian “shadow fleet” operation. The U.S. Treasury Department has sanctioned numerous entities involved in this network, including :

• Hengli Petrochemical: A major Chinese “teapot” refinery identified as one of Iran’s biggest oil customers
• Babylon Navigation DMCC: A UAE-based company involved in the logistics and transportation of Iranian oil
• Waleed Khaled Hameed al-Samarra’i: A UAE businessman whose network is estimated to generate about $300 million in annual profits for Iran and its partners

The Treasury Department called the shadow fleet operation a “financial lifeline to Iran’s unstable regime” .

🇺🇸 U.S. Response: ‘Operation Economic Fury’

The Trump administration has intensified its response through “Operation Economic Fury” — an economic pressure campaign combining aggressive sanctions, maritime enforcement, and financial targeting .

Treasury Secretary Scott Bessent has stated that Iran’s oil industry is “creaking” under the blockade, and that daily revenues could fall by as much as $170 million if production is forced to scale back .

President Trump has declared that he will keep Iran under a naval blockade until it agrees to a deal addressing U.S. concerns about its nuclear program . However, with Tehran demanding the blockade be lifted as a precondition for negotiations — and Washington insisting on nuclear concessions first — the diplomatic stalemate continues to fuel the cat-and-mouse game on the high seas.