Why it matters:
Iran has long struggled with fuel smuggling due to its subsidized fuel prices, which create a profitable black market for smugglers. The crackdown underscores Tehran’s increasing efforts to curb illegal fuel trade along its southern maritime borders.
The big picture:
Iran offers some of the world’s cheapest fuel, making smuggling highly lucrative.
Iranian authorities estimate that 25-30 million liters of fuel are smuggled out of the country daily.
The latest seizure follows another IRGC operation last week, where a ship carrying one million liters of smuggled oil was intercepted.
Key points:
- The seized tankers, Start 1 and Vintage, were intercepted on March 31, 2025.
- The vessels and their crew were taken to Iran’s southern Bushehr port.
- Diesel fuel in Iran is priced at 3,000 rials ($0.003) per liter for limited quotas, but it can sell for significantly more abroad.
Go deeper:
Reports have shown that large volumes of gas oil, a type of diesel fuel with fewer additives, that is normally supplied to Iranian power plants, have also been smuggled to neighboring countries in recent months.
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Hossein Vaez
