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Iran’s Revolutionary Guards Tighten Control Over Tehran’s Oil Exports

Iran’s Revolutionary Guards (IRGC) have significantly expanded their control over the country’s oil industry, now managing up to half of Iran’s oil exports, which generate the bulk of Tehran’s revenue and fund its operations across the Middle East. According to sources within the Iranian and international security circles, the IRGC’s influence now stretches across all facets of the oil business—from shipping oil on a fleet of tankers used to circumvent sanctions, to managing logistics and front companies that sell the crude, primarily to China.

The rise in the IRGC’s dominance comes despite heavy Western sanctions, reinstated by former U.S. President Donald Trump in 2018, which were intended to cripple Iran’s energy sector. However, Iran continues to generate over $50 billion annually from oil exports, making it the country’s largest foreign currency earner.

The IRGC’s share of the oil exports has surged from about 20% three years ago to up to 50% today. This shift reflects the Guards’ increasing role in circumventing sanctions and highlights their growing control over Iran’s economy. Despite tough Western restrictions, Iran’s oil exports have been steadily rising, with China being the largest buyer, followed by various front companies facilitated by the IRGC.

The IRGC’s influence extends beyond oil sales, as they have infiltrated state institutions like the National Iranian Oil Company (NIOC), which once held a monopoly on oil exports. The Guards have leveraged their expertise in smuggling oil, an area in which they have excelled despite being less skilled in managing oil fields. The IRGC also uses significant discounts to attract buyers willing to take on the risk of dealing with a U.S.-designated terrorist organization.

The Guards’ control over oil exports has complicated the effectiveness of Western sanctions, as they operate through a network of covert channels and front companies. Despite sanctions, Iran has maintained a resilient oil trade, with the IRGC’s smuggling operations ensuring that a large portion of the oil revenue remains untraceable to official state mechanisms.

While Israel and the U.S. continue to target the IRGC with sanctions, the organization has shown remarkable resilience in maintaining its oil trade, with significant support from China, which continues to buy oil despite international restrictions. This growing control over Iran’s oil industry also strengthens the IRGC’s ability to fund operations across the Middle East, reinforcing its influence over regional conflicts and its ties to various militant groups.

The expansion of the IRGC’s control over Iran’s oil sector also complicates any potential diplomatic or economic resolution, as it strengthens the Guards’ hold over Iran’s economy and its global trade relationships.

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