The U.S. Is Using An Iranian Smuggling Tactic To Sneak Oil Out Of The Gulf: Reuters

DUBAI, June 16 (Reuters) – The U.S. military has overseen multiple secret ship-to-ship transfers of oil to sustain energy exports in the Gulf, using air and water drones as well as helicopters to direct convoys to waiting tankers.

The operation on the edge of the Strait of Hormuz uses a shuttle technique that Iran has long used to circumvent sanctions. Two specific locations where oil transfers occurred were identified by 11 people familiar with the operation; one off the coast of Fujairah in the United Arab Emirates and the other off the port of Sohar in Oman. At least 92 ships were involved in the transfers that began in early May, according to shipping data and satellite images reviewed by Reuters.

As recently as June 11, 17 pairs of ships could be seen simultaneously transferring oil in two areas, according to satellite images reviewed by Reuters.

The mission also included an Apache helicopter shot down by Iran on June 9, prompting retaliatory U.S. bombings, according to four sources, including a former U.S. official with knowledge of the attack. Using satellite imagery, Reuters counted six pairs of tanker ships clustered together in a small area off the port of Sohar on the day the Apache was hit.

Reuters could not confirm what role Apache played in the operation. In response to questions from Reuters, a US defense official said no Central Command forces were involved in the offshore ship-to-ship oil transfer operation. U.S. officials said both crew members were rescued by the drone boat.

The extent of ship-to-ship transfers, how they work, and Apache’s role in the operation have not been previously reported. The White House referred questions to Centcom. The Iranian government did not respond to requests for comment on the transfer operation.

The two points where these transfers took place, near the exit of the Strait of Hormuz in the Gulf of Oman, are close to the borders drawn by the Persian Gulf Straits Authority, a new Iranian body established to manage the Strait of Hormuz. Ships that do not comply with Iran’s orders face the risk of drone and missile attacks from the Islamic Revolutionary Guard Corps.

Fujairah port came under repeated Iranian fire throughout the duration of this US-led operation. An “unknown projectile” hit a tanker off the coast of Oman last weekend, according to British maritime risk management group Vanguard. Vanguard said in a statement that the crew was safe and that the collision caused some leakage of cargo but did not cause environmental damage. It was not stated whether the tanker was included in the ship-to-ship transfer.

Iran responded to the US-Israeli war by effectively closing the Strait of Hormuz, through which approximately one-fifth of global oil consumption normally passes. This created the largest global energy supply disruption in history and increased inflation around the world.

Ship-to-ship transfers, though risky and inefficient, appear to be part of the Trump administration’s efforts to restore normal oil flows from the Gulf. US President Donald Trump said the Strait of Hormuz will reopen on Friday within the framework of the peace deal with Iran announced this week, but details remain unclear. Reuters could not determine whether the announced agreement affected oil transfers.

A Reuters investigation published May 20 found that Iran has set up its own system, including island checkpoints, diplomatic agreements and sometimes fees, to move ships across the Strait.

Eight sources, including a private security contractor involved in the transfers, said American transfer operations were entirely controlled by the US military.

According to one of the sources and satellite images, the tankers are supposed to go to a rendezvous point before reaching the strait, then separate so that they are about 3,000 to 4,000 meters apart. According to four sources, their transponders were off and their lights were dimmed.

A series of waypoints allowed the US military to monitor the progress of designated tankers, but the Americans were “obviously watching you all the time,” one of the sources said.

Once the tankers pass through the strait just beyond the area Iran has designated as under its control, they dock alongside receiving ships, which are Very Large Crude Oil Carriers, or VLCCs, to begin oil transfers. These take between 24 and 40 hours to complete. The empty tankers then return through the strait and the newly loaded VLCCs continue on their way.

What makes this ship-to-ship operation possible is that, despite the Iranian blockade, there are several shippers willing to take their ships through the strait to deliver the oil to waiting tankers.

However, the operation is risky. “You never know when Iran will start using drones, or even warships, to prevent even these ships from passing through the strait,” said Noam Raydan, a senior researcher at the Washington Institute who specializes in maritime risk and reviewed the Reuters findings.

The ship-to-ship technique has been used by Iran for years to evade sanctions because it masks the source of the oil. The Iranians often operated a pair of ships at a time, both to avoid detection and because their pre-war exports were relatively small. The US-led operation, which includes mass transfers, gives Gulf producers better protection against retaliatory attacks by Iran; thus, they can transport crude oil, condensate and petroleum products to international buyers.

Reuters reviewed more than a dozen satellite images taken between May 2 and June 11 showing ship-to-ship transfers, including between state-owned tanker fleets in the Gulf and internationally operated vessels taking oil. LSEG and Kpler shipping data reviewed by Reuters showed repeated encounters between tankers operating in the area during the same period.

Based on the images, Reuters calculated that at least 90 million barrels of crude oil and oil products may have been transported through the offshore network since early May. The volumes calculated according to the carrying capacity of tankers are still small compared to the average of 20 million barrels passing through the Bosphorus daily before the war.

“It is ironic that as the old rules weaken, the United States is taking a page out of the playbook of China, Russia, North Korea and even Iran, whose so-called ‘dark fleets’ have pioneered these techniques precisely to evade U.S. and U.N. sanctions,” Council on Foreign Relations President Michael Froman said in a note Friday. he said. As Trump stated in his June 10 comment after the shooting down of the Apache, he was talking about the practice of sending ships through the strait without transponders.

Six sources with direct knowledge of the operation said the United States supported participating ships through aerial surveillance, compliance screening and tracking rather than naval escort. Reuters found no indication that US military personnel were directly involved in the transfers.

According to shipping records, international tanker operators dominate the receiving side of the operation. One of them, Greece-based Dynacom Tankers Management, touched upon its efforts to find creative ways to transport oil through the strait since the war began on February 28.

“Freedom of navigation is essential and no one can impose fees or other burdens,” Dynacom founder George Procopiou said at the Capital Link maritime conference in Athens on June 1. “We are here to serve, and Greece has a tradition of breaking blockades since ancient times,” he said. “I don’t want to go into further detail, but I believe the clues are enough to understand what I mean.”

Dynacom did not immediately respond to a request for comment on its U.S. operation.

But another maritime source said the new system imposes its own risks on their industry.

“There is a lack of reliable data,” the maritime security source said. Transponders used to transmit ships’ positions are being shut down and “companies are not reporting through their usual reporting centres.” According to many maritime industry officials, this poses a risk of collision between ships traveling at speeds that do not allow easy maneuvering at night with their lights off.

Operators seeking access to the system must go through a compliance review process before being allocated transit windows, four sources familiar with the regulations said. The process includes sending information to the U.S. Navy’s Maritime Cooperation and Guidance office in Bahrain.

Two preliminary compliance documents reviewed by Reuters required operators to provide full geographic tracking histories, full beneficial ownership declaration, cargo documentation and willingness to allow cargo testing.

If approved, participating ships will be assigned passage windows and will remain in contact with the US military office in Bahrain throughout the voyage.

United Arab Emirates exports make up a significant portion of the U.S. transfer operation, according to shipping records reviewed by Reuters. ADNOC, the UAE’s state-owned national oil company, was among the most active participants in the US-led transfers, six of the sources said.

Kuwait Oil Tanker Company also takes an active role in transfers. According to TankerTrackers.com data, approximately 2.3 million barrels of crude oil were withdrawn from one of its ships off the coast of Sohar on June 6, one of the busiest days for transfers. The receiving ship, Sea Ruby, was spotted off India’s southwestern coast five days later and headed for China, where the cargo was expected to be unloaded.

The UAE government, ADNOC and Kuwait Oil Tanker Company did not respond to requests for comment.

“I don’t see a permanent solution to all of this,” Raydan said. “This is a temporary solution in exceptional times.”

(Reporting by Feras Dalatey in Dubai; Jonathan Saul, Dmitry Zhdannikov and Edward Carron in London. Additional reporting by Erin Banco in Washington; Editing by Lori HInnant)