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Home ›› Intl Trade ›› Import Export ›› Incoterms ›› U.S. Military Uses Iranian Smuggling Tactic for Gulf Oil Transfers Amid Strait Closure

U.S. Military Uses Iranian Smuggling Tactic for Gulf Oil Transfers Amid Strait Closure

The U.S. military has conducted scores of ship-to-ship oil transfers off Fujairah and Sohar since early May, employing a shuttling technique previously used by Iran to evade sanctions. The operation, involving at least 92 ships, aims to maintain Gulf energy exports after Iran effectively closed the Strait of Hormuz, causing the biggest global energy supply disruption in history. An Apache helicopter involved in the mission was shot down by Iran on June 9.

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iGEN Editorial
June 16, 2026
U.S. Military Uses Iranian Smuggling Tactic for Gulf Oil Transfers Amid Strait Closure

The United States military is overseeing scores of clandestine ship-to-ship oil transfers in the Gulf of Oman, using a smuggling tactic long employed by Iran to skirt sanctions, according to shipping data, satellite imagery, and interviews with 11 people familiar with the operation reviewed by Reuters.

Operation Details

The transfers take place at two specific locations: one off the coast of Fujairah in the United Arab Emirates and the other off Oman's port of Sohar, according to the sources. The operation began in early May, and at least 92 ships have been involved, based on shipping data and satellite imagery reviewed by Reuters.

As recently as June 11, 17 pairs of ships could be seen carrying out simultaneous oil transfers at the two sites, according to satellite images examined by Reuters. Tankers must sail to a meeting point before the strait and then stagger their departures 3,000 to 4,000 meters apart, one source and satellite imagery revealed.

The transfers are fully controlled by the U.S. military, said eight sources, including a private security contractor who has participated in the operation. Aerial and water drones, as well as helicopters, guide convoys to awaiting tankers.

The Tactic

The shuttling technique mirrors methods Iran has used to evade sanctions. Reuters reported on May 20 that Iran established its own system for ushering ships through the opposite side of the Strait of Hormuz, involving island checkpoints, diplomatic deals, and sometimes fees. The U.S. operation reverses the tactic, using similar ship-to-ship transfers to keep Gulf energy exports flowing despite Iran's closure of the strait.

An Apache helicopter that was shot down by Iran on June 9—sparking retaliatory U.S. bombings—was involved in the transfer mission, according to four sources, including a former U.S. official with knowledge of the attack. Both crew members were rescued by a drone boat, U.S. officials said. Reuters could not confirm the Apache's specific role in the operation. A U.S. defense official responded to Reuters that no Central Command forces are taking part in an offshore ship-to-ship operation.

Risks and Context

Iran's response to the U.S.-Israeli war effectively closed the Strait of Hormuz, through which roughly a fifth of global oil consumption normally passes. This created the biggest global energy supply disruption in history and has spurred inflation worldwide, according to the report.

The two transfer spots are close to boundaries drawn by the Persian Gulf Strait Authority, a new Iranian body established to manage the Hormuz Strait. Ships failing to comply with Iran's orders risk drone and missile attack by the Islamic Revolutionary Guard Corps. The Fujairah port itself has come under repeated Iranian fire during the operation.

Vanguard, a British maritime risk management group, reported that on the past weekend, an “unknown projectile” struck a tanker off the coast of Oman, causing some cargo leakage but no environmental damage. It did not specify whether the tanker was involved in a ship-to-ship transfer.

Iran's Own System

Aspect U.S. Operation Iranian System (per Reuters May 20)
Method Ship-to-ship transfers near Fujairah and Sohar Island checkpoints, diplomatic deals, fees
Control U.S. military Iranian authorities
Purpose Bypass Iranian closure of Strait of Hormuz Usher ships through opposite side of strait

Ongoing Developments

U.S. President Donald Trump said the Strait of Hormuz would reopen on the Friday following the report under a framework peace deal with Iran announced that week, but details remain vague. Reuters could not determine whether the deal has affected the oil transfers. The White House referred questions to Centcom, and the Iranian government did not respond to requests for comment. The transfers, though risky and inefficient, appear part of the Trump administration's efforts to restore normal oil flows from the Gulf, according to Reuters.


Sources: TheHindu-C

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