Tankers in the Shadows: Iraq a Strategic Hub for Sanctioned Oil Transport

Iraq has recently emerged as a key logistical player within the shadow oil tanker network serving sanctioned countries such as Russia, Iran, and Venezuela.

S&P Global data indicates that the fleet of these vessels expanded significantly during the first half of 2025, relying on new shipping companies registered in China, Hong Kong, and the UAE to circumvent Western restrictions on oil exports.

Some brokers exploit Iraq’s ports to facilitate the transport of crude oil and its products, including oil exchanges between sanctioned countries and Venezuela, making Iraq a key transit point for this international trade.

According to experts, some Iranian shipments are being funneled under the guise of Iraqi oil, prompting Western authorities to impose sanctions on intermediaries linked to these operations, including Iraqi-British citizen Salim Ahmed Saeed.

Internationally, Russia, Iran, and Venezuela rely on this fleet to secure their exports despite sanctions. The ships are highly flexible and enable them to transport oil to major markets such as China and India at reduced prices, benefiting from the evasion of oversight and the discounts on barrel prices compared to non-sanctioned oil.

However, these operations face widespread criticism due to environmental risks and the proliferation of old, uninsured ships, which can cause significant damage to the marine environment.

Economists say that Iraq and other countries involved in these maritime networks play important strategic roles, providing essential transit points to facilitate international trade. Meanwhile, shipping companies continue to make significant profits by exploiting differences in global oil prices and demand, despite increasing Western pressure on sanctioned countries to reduce unauthorized flows.

Shafaq.com