A joint military campaign led by the United States and Israel targeting Iran has escalated multiple times since late February. Recent events have led to a significant reduction in oil supply globally due to the partial closure of the Strait of Hormuz.
A recent extensive report by The Economist indicates that the U.S. may not have achieved the expected outcomes from attacking Iran. Tehran is now earning nearly double the daily revenue from oil sales compared to pre-conflict levels, shipping between 2.4 and 2.8 million barrels per day, similar to pre-war figures. The key factor driving increased profits is the 75% rise in the value of each barrel, expected to reach $104 per barrel in the near future.
China has emerged as the primary buyer of Iranian oil, accounting for over 90% of the purchases. Previously, smaller refineries obtained Iranian oil at discounted rates. However, with reduced supply from other Gulf countries due to the Strait of Hormuz closure, Iran has been able to increase its prices.
Transactions are processed through a network of shell companies and “trust accounts” based in China and Hong Kong, utilizing fictitious names to transfer money across multiple accounts globally to avoid detection. Concerns have been raised about the utilization of these funds, as they directly benefit the Islamic Revolutionary Guard Corps (IRGC), deeply embedded in Iran’s oil industry.
Approximately 20 influential figures control access to oil sales, minimizing the likelihood of foreign interference. The military alliance supports oil shipping by disabling tracking systems, falsifying locations, and enforcing strict regulations on vessels passing through the Strait of Hormuz, potentially charging substantial tolls. Individual shipments can be valued at up to $200 million.
