Iran's oil intermediaries and a multi-billion dollar debt crisis

As the United States maintains a naval blockade and strict sanctions on its oil exports, Tehran is grappling with a major domestic problem: billions of dollars in revenue from previous oil sales that have failed to reach the government. According to judiciary officials, a network of private oil intermediaries owes the state between 10 billion and 11 billion euros, an amount equivalent to half of Iran’s projected oil revenue for the fiscal year.

Iran first devised this workaround in 2012 to bypass international restrictions. Unable to sell crude through official ministries, the state entrusted oil to domestic institutions, pension funds, and private companies to sell on its behalf, with proceeds meant for the national treasury. However, these shadow arrangements consistently suffered from accounting discrepancies and missing funds, giving rise to major corruption cases over the years.

Following the renewal of maximum pressure campaigns and the expansion of global sanctions, these private traders increasingly found their accounts frozen and assets blocked, preventing them from returning the oil revenues to the government. While authorities have warned of legal action against those refusing to pay, the ongoing sanctions environment continues to obstruct the recovery of these billions.