US Adopts Iran's Oil Smuggling Tactics Amid Strait of Hormuz Crisis

In a remarkable strategic shift, the United States military has reportedly begun employing techniques previously used by Iran to circumvent sanctions and move oil, in response to the escalating crisis and the effective closure of the Strait of Hormuz. This operation, detailed in a Reuters investigation and corroborated by other outlets, involves secretive ship-to-ship (STS) oil transfers, utilizing aerial and water drones, and helicopters for oversight. The core of this strategy is a shuttling technique that Iran has long used to disguise the origin of its oil and evade international sanctions. The operation commenced in early May and has so far involved at least 92 vessels, with satellite imagery revealing up to 17 simultaneous transfers occurring at two specific locations: one off the coast of Fujairah in the United Arab Emirates and another near Oman's port of Sohar. Based on the carrying capacity of tankers identified, an estimated 90 million barrels of crude oil and petroleum products may have moved through this offshore network since early May. The scale of these transfers, though significant, is a fraction of the approximately 20 million barrels that typically transit the Strait of Hormuz daily before the current conflict. The Strait of Hormuz, a critical chokepoint for global energy security, has been significantly impacted by the ongoing US-Iran conflict. Reports indicate that traffic through the strait has dramatically decreased, with some sources stating it was nearly shut down. This closure has led to considerable volatility in global oil markets, with prices surging and concerns of supply shortages arising, particularly in Asia. The US military's adoption of Iran's STS tactics appears to be a direct response to maintaining energy export flows from the Gulf region despite the blockade and the threats of attacks. Iran has historically used STS transfers to mask the source of its oil, often operating with a smaller number of ships to avoid detection. However, the US-led operation involves mass transfers, a move seen as providing greater protection from potential Iranian retaliation while ensuring crude oil and petroleum products reach international buyers. A notable incident linked to this operation was the downing of a US Army Apache helicopter over the Strait of Hormuz on June 9. Reports suggest this helicopter was involved in the oil transfer mission, and its loss prompted retaliatory bombings by the US against Iran. While US defense officials have stated that no Central Command forces are directly participating in the offshore ship-to-ship transfer operation, the coordination and oversight provided by drones, helicopters, and potentially other surveillance methods underscore the military's involvement. The technique involves tankers sailing to a meeting point before the strait, staggering their departures, and operating with their transponders turned off and lights dimmed to minimize detection. The transfers themselves, occurring between shuttle tankers and Very Large Crude Carriers (VLCCs), take between 24 to 40 hours to complete. Once loaded, the VLCCs continue to international markets, while the empty shuttle tankers return through the strait. This development highlights the complex geopolitical dynamics and the adaptive strategies employed by nations in managing global energy flows during periods of heightened conflict. The reliance on methods previously associated with sanctions evasion by Iran underscores the unconventional approaches being taken to navigate the current energy crisis. The implications for global energy markets, sanctions enforcement, and regional stability remain significant as the conflict and these covert operations continue.

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