Iran's ghost fleet refers to a network of

oil tankers An oil tanker, also known as a petroleum tanker, is a ship designed for the bulk transport of oil or its products. There are two basic types of oil tankers: crude tankers and product tankers. Crude tankers move large quantities of unrefined cr ...

shell companies A shell corporation is a company or corporation with no significant assets or operations often formed to obtain financing before beginning business. Shell companies were primarily vehicles for lawfully hiding the identity of their beneficial ...

, and covert logistical operations used by the

Islamic Republic of Iran Iran, officially the Islamic Republic of Iran (IRI) and also known as Persia, is a country in West Asia. It borders Iraq to the west, Turkey, Azerbaijan, and Armenia to the northwest, the Caspian Sea to the north, Turkmenistan to the nort ...

to secretly export oil in defiance of international sanctions, primarily those imposed by the

United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...

. The fleet plays a central role in sustaining Iran’s sanctioned economy, particularly in funding the

Islamic Revolutionary Guard Corps The Islamic Revolutionary Guard Corps (IRGC), also known as the Iranian Revolutionary Guards, is a multi-service primary branch of the Islamic Republic of Iran Armed Forces, Iranian Armed Forces. It was officially established by Ruhollah Khom ...

(IRGC) and its foreign operations.

Background

Following the re-imposition of U.S. sanctions after Washington’s 2018 withdrawal from the

Joint Comprehensive Plan of Action The Joint Comprehensive Plan of Action (JCPOA; (, BARJAM)), also known as the Iran nuclear deal or Iran deal, is an agreement to limit the Iranian nuclear program in return for sanctions relief and other provisions. The agreement was finalize ...

(JCPOA), Iran turned to covert oil exports to maintain its revenues. With the formal energy sector increasingly isolated from global markets, Iran constructed a clandestine supply chain supported by hundreds of maritime vessels operating under false identities, with manipulated tracking systems and fraudulent documentation.

Structure and operations

The ghost fleet consists of vessels with obscured ownership, often registered under flags of convenience in jurisdictions such as

Panama Panama, officially the Republic of Panama, is a country in Latin America at the southern end of Central America, bordering South America. It is bordered by Costa Rica to the west, Colombia to the southeast, the Caribbean Sea to the north, and ...

and the

Marshall Islands The Marshall Islands, officially the Republic of the Marshall Islands, is an island country west of the International Date Line and north of the equator in the Micronesia region of the Northwestern Pacific Ocean. The territory consists of 29 c ...

. Many ships operate with

Automatic Identification System The automatic identification system (AIS) is an automatic tracking system that uses transceivers on ships and is used by vessel traffic services (VTS). When satellites are used to receive AIS signatures, the term ''Satellite-AIS'' (S-AIS) is ...

(AIS) transponders disabled, engage in ship-to-ship transfers, and employ deceptive shipping practices like falsified bills of lading or misrepresented cargo origins. These practices have enabled Iran to move millions of barrels of crude oil to countries such as China, Syria, and Venezuela, circumventing sanctions enforcement.

Modus Operandi

Flag hopping

Ships frequently change their country of registration ("flag hopping") to obscure their ownership and avoid detection. This is often done through registries with limited oversight, such as Panama, which currently flags about 17% of the identified ghost fleet vessels.

Shell compamies and ownership obfuscation

The fleet relies on a web of shell and front companies, often registered in jurisdictions like

Hong Kong Hong Kong)., Legally Hong Kong, China in international treaties and organizations. is a special administrative region of China. With 7.5 million residents in a territory, Hong Kong is the fourth most densely populated region in the wor ...

, the

UAE The United Arab Emirates (UAE), or simply the Emirates, is a country in West Asia, in the Middle East, at the eastern end of the Arabian Peninsula. It is a federal elective monarchy made up of seven emirates, with Abu Dhabi serving as i ...

Liberia Liberia, officially the Republic of Liberia, is a country on the West African coast. It is bordered by Sierra Leone to Liberia–Sierra Leone border, its northwest, Guinea to Guinea–Liberia border, its north, Ivory Coast to Ivory Coast–Lib ...

, and Panama, to mask the true ownership and operation of the vessels.

Digital and physical deception

Ships may alter their physical markings, change names, and manipulate tracking systems (such as turning off AIS transponders) to avoid detection. Ship-to-ship (STS) transfers are conducted in international waters, especially outside port limits in Southeast Asia, to further obscure the origin and destination of the oil.

AIS Manipulation

Vessels routinely disable or spoof their Automatic Identification System (AIS) transponders, making them invisible to global tracking systems or broadcasting false locations.

Vessel name changes and repainting

Tankers are frequently renamed and repainted, further frustrating efforts to link them to Iranian interests.

Ship-to-Ship (STS) transfers

Oil is often transferred between ships in international waters, especially near the Gulf of

Oman Oman, officially the Sultanate of Oman, is a country located on the southeastern coast of the Arabian Peninsula in West Asia and the Middle East. It shares land borders with Saudi Arabia, the United Arab Emirates, and Yemen. Oman’s coastline ...

, off

Iraq Iraq, officially the Republic of Iraq, is a country in West Asia. It is bordered by Saudi Arabia to Iraq–Saudi Arabia border, the south, Turkey to Iraq–Turkey border, the north, Iran to Iran–Iraq border, the east, the Persian Gulf and ...

, and near the UAE, to obscure the origin of the cargo.

Deceptive documentation and blending

Iranian oil is sometimes blended with oil from other countries and shipped with falsified documents listing incorrect origins, allowing it to enter legitimate markets.

IRGC involvement

The IRGC is believed to control or benefit from a significant portion of the ghost fleet's activities. According to Reuters, nearly half of Iran’s oil exports are under the control of the IRGC and its affiliates, often via front companies and cutout operators. These revenues are used to fund military operations and proxy groups across the

Middle East The Middle East (term originally coined in English language) is a geopolitical region encompassing the Arabian Peninsula, the Levant, Turkey, Egypt, Iran, and Iraq. The term came into widespread usage by the United Kingdom and western Eur ...

, as well as to prop up allied regimes.

Notable case studies

In February 2024, the

U.S. Department of Justice The United States Department of Justice (DOJ), also known as the Justice Department, is a federal executive department of the U.S. government that oversees the domestic enforcement of federal laws and the administration of justice. It is equi ...

announced seizures and criminal charges against individuals and entities linked to a billion-dollar trafficking network that had delivered illicit Iranian oil to foreign buyers using a series of front companies, tankers, and brokers. Among the sanctioned facilitators was an Iranian-linked network operating through Turkey, the UAE, and

Malaysia Malaysia is a country in Southeast Asia. Featuring the Tanjung Piai, southernmost point of continental Eurasia, it is a federation, federal constitutional monarchy consisting of States and federal territories of Malaysia, 13 states and thre ...

Chinese purchasers and global impact

Despite sanctions,

Chinese Chinese may refer to: * Something related to China * Chinese people, people identified with China, through nationality, citizenship, and/or ethnicity **Han Chinese, East Asian ethnic group native to China. **'' Zhonghua minzu'', the supra-ethnic ...

refiners remain the primary recipients of Iranian oil via the ghost fleet.

United Against Nuclear Iran United Against Nuclear Iran (UANI) is a bipartisan, non-profit advocacy organization based in the United States. Its stated objective is to "prevent Iran from fulfilling its ambition to become a regional super-power possessing nuclear weapons." Al ...

(UANI) has documented extensive evidence of China-based entities purchasing Iranian crude under falsified documentation, often labeled as Malaysian or Omani origin. This illicit trade undermines international sanctions and contributes to increased regional tensions.

Sanctions and enforcement efforts

U.S. authorities have targeted the ghost fleet through sanctions, seizures, and criminal indictments. UANI and other watchdogs regularly publish updated maps and trackers of Iranian tankers, some of which are refurbished vessels rebranded under new flags and ownership structures. The U.S. government has also seized multiple cargoes of smuggled oil and prosecuted those aiding Iran’s efforts to bypass restrictions.

Notable vessels and companies

Recent U.S. sanctions have targeted specific vessels, including: * BENDIGO (IMO: 9289491) * CARNATIC (IMO: 9304655) * SALVIA (IMO: 9297319) * LUNA PRIME (IMO: 9174220) * ELZA (IMO: 9221671) * GOODWIN (IMO: 9379703) * ANHONA (IMO: 9354521) * WEN YAO (IMO: 9288095) * SPIRIT OF CASPER (IMO: 9224271) * CRYSTAL ROSE (IMO: 9292228) * CARINA (IMO: 9240512) * DIMITRA II (IMO: 9208215) * TYCHE I (IMO: 9247390) * SATINA (IMO: 9308778) * CROSS OCEAN (IMO: 9251810) * AVENTUS I (IMO: 9280873) * DAVINA (IMO: 9259367) * BERG 1 (IMO: 9262168) * VORAS (IMO: 9203265) * HORNET (IMO: 9197844) * SHANAYE QUEEN (IMO: 9242118) * CAROL (IMO: 9070072) * OCTANS (IMO: 9224295)

Links to terrorist financing

According to the Global Fight Against Terrorism Funding (GFATF), the ghost fleet serves as a revenue stream for organizations designated as terrorist groups, such as Hezbollah, by laundering funds and transferring oil revenues through opaque banking and shipping networks. The IRGC-Quds Force also uses this network to finance operations in Iraq,

Lebanon Lebanon, officially the Republic of Lebanon, is a country in the Levant region of West Asia. Situated at the crossroads of the Mediterranean Basin and the Arabian Peninsula, it is bordered by Syria to the north and east, Israel to the south ...

Syria Syria, officially the Syrian Arab Republic, is a country in West Asia located in the Eastern Mediterranean and the Levant. It borders the Mediterranean Sea to the west, Turkey to Syria–Turkey border, the north, Iraq to Iraq–Syria border, t ...

, and

Yemen Yemen, officially the Republic of Yemen, is a country in West Asia. Located in South Arabia, southern Arabia, it borders Saudi Arabia to Saudi Arabia–Yemen border, the north, Oman to Oman–Yemen border, the northeast, the south-eastern part ...

References

{{Reflist Islamic Revolutionary Guard Corps Oil tankers Economy of Iran Sanctions against Iran