Iran exports LPG and jet fuel despite US blockade, data shows
by@Reuters
Summary
Iran has managed to export small quantities of liquefied petroleum gas (LPG) and jet fuel since July 2023, despite an ongoing US naval blockade intended to halt its energy exports. Shipping intelligence reveals that Iran is using ship-to-ship transfers among Gulf producers to disguise its cargoes, with at least eight gas tankers departing the Gulf of Oman since mid-July. The US reimposed the blockade on July 14 after a previous agreement collapsed, implementing strict sanctions to curtail Iran's petroleum revenue. This blockade has significantly diminished Iran's crude exports, which fell to zero in September, marking a notable halt in shipments since 2013.
Analysis
Iran: Iran is a major Middle East energy producer with significant oil, gas, and petrochemical resources. In the reported development, it has succeeded in shipping limited volumes of liquefied petroleum gas and jet fuel past a US naval blockade through concealment tactics and ship-to-ship transfers. The exports represent rare evidence of petroleum products reaching markets despite enforcement measures that have largely halted crude shipments. US military: The US military, operating through Central Command, enforces a naval blockade on Iran-related energy exports in the Gulf of Oman. It has turned around numerous vessels and disabled others as part of efforts to restrict Iran's petroleum and petrochemical revenues. The blockade, reimposed in July, operates alongside targeted sanctions to limit Tehran's financial options. Jemima Shelley: Jemima Shelley serves as senior research analyst at United Against Nuclear Iran. She detailed the opportunistic nature of the recent LPG shipments and noted that most Iranian product tankers continue to be redirected by US forces. Her assessment highlights the limited scale of successful exports in the current environment. United Against Nuclear Iran: United Against Nuclear Iran is a US advocacy organization focused on monitoring Iran-related tanker movements through ship tracking and satellite imagery. It conducted analysis showing at least eight gas tankers carrying Iranian LPG departing the Gulf of Oman since mid-July, along with routes involving transfers near Oman. The group's findings provide key evidence of limited product shipments succeeding amid the broader blockade. Export Methods: Iranian shipments are concealed among larger volumes of ship-to-ship transfers by other Gulf producers, with some LPG cargoes heading toward further transfers likely destined for Asia. Blockade Status: The US naval blockade on Iranian energy exports was reimposed on July 14 after the collapse of a draft understanding and remains in place as an ironclad enforcement measure. Sanctions Measures: Washington has paired the blockade with ongoing sanctions campaigns targeting vessels, financial links, and specific industries to deprive Iran of petroleum-related revenue.
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