Sanctions fail to slow IRGC's grip on Iran’s oil exports, sources say

Iran's Revolutionary Guards (IRGC) have significantly expanded their control over the country’s oil exports, now managing up to 50% of the nation's oil sales.

According to Western officials, security sources, and Iranian insiders, this marks a sharp increase from just 20% three years ago, Caliber.Az reports citing foreign media.

The IRGC has taken control of various aspects of the oil industry, including the shadow tanker fleet, logistics, and front companies, largely focusing on selling oil to China.

Despite intense Western sanctions imposed in 2018 by the Trump administration, Iran continues to generate over $50 billion annually from oil exports, a vital source of foreign currency and economic stability. This revenue supports not only the Iranian economy but also Tehran’s extensive network of allies and proxies across the Middle East.

The IRGC’s growing dominance over the oil industry complicates the effectiveness of these sanctions, as the Guards have become highly skilled at bypassing restrictions.

The IRGC’s influence extends beyond oil, further tightening its grip over critical state institutions like the National Iranian Oil Company (NIOC), which traditionally handled the country’s oil exports. While NIOC struggled to navigate sanctions, the IRGC proved more adept at smuggling and evading sanctions, allowing it to control a large portion of the market. This control over oil is vital for the IRGC’s operations and its ability to fund its military and political activities, particularly through its overseas arm, the Quds Force, which supports militant groups such as Hezbollah, Hamas, and the Houthis in Yemen.

As Iran's oil output continues to rise — reaching over 3.3 million barrels per day — the IRGC's role becomes increasingly crucial.

Although the US is expected to ramp up enforcement of sanctions under President-elect Donald Trump, the Guards have already adapted to these pressures by setting up front companies and finding alternative ways to market their oil, often at discounted prices.

Despite these challenges, the IRGC's control over Iran’s oil exports remains a central pillar of Tehran's strategy both economically and geopolitically.

By Tamilla Hasanova