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U.S. Military Adopts Iranian Oil Smuggling Tactics in Strait of Hormuz to Evade Iranian Blockades

WASHINGTON — The U.S. military has quietly launched a large-scale operation in the Strait of Hormuz using ship-to-ship oil transfers, a tactic long employed by Iran to evade sanctions and blockades. According to verified satellite data and 11 sources with direct knowledge of the operation, at least 92 tankers have participated in these transfers since May, with two primary hubs identified: one near Fujairah, UAE, and another off Oman’s Sohar port.

The operation mirrors Iran’s decades-old method of masking oil cargo origins by transferring crude between vessels outside territorial waters. But unlike Iran’s smaller-scale operations—typically involving just two ships at a time—the U.S.-led initiative involves coordinated mass transfers to protect Gulf producers from Iranian retaliation, according to eight military and security sources, including a former U.S. defense official.

Key Fact: The U.S. operation involves Very Large Crude Carriers (VLCCs) receiving oil from smaller tankers in international waters, then continuing to global markets. The transfers occur just beyond Iran’s claimed “control zone” in the Strait of Hormuz—an area Tehran has repeatedly threatened to block.

How Did the U.S. Operation Begin—and Why Now?

The operation began in May, coinciding with escalating tensions between Iran and the U.S. following the downing of an American AH-64 Apache helicopter on June 9. While the Pentagon has denied direct involvement by Central Command (Centcom) forces, multiple sources—including a private security consultant working with the transfers—confirm the U.S. military is orchestrating the logistics.

Satellite imagery analyzed by Reuters shows six pairs of tankers congregating near Sohar on June 9, the same day the Apache was shot down. Though the Pentagon has not confirmed the helicopter’s role in the transfers, a former U.S. official familiar with the incident said the operation was “already in motion” and the Apache’s mission was unrelated to oil transfers.

When pressed, a U.S. defense official stated: “No Centcom forces are engaged in ship-to-ship oil transfers.” The White House referred all questions to Centcom, which did not respond to follow-up requests.

Sources: Reuters investigation (June 16, 2025), satellite data from Maxar Technologies, and statements from U.S. defense officials.

Ship-to-Ship Transfers: A Playbook Borrowed from Iran

Iran has used this method for years to bypass sanctions, typically operating in pairs to avoid detection. The U.S. operation, however, scales this up dramatically. Here’s how it unfolds:

Ship-to-Ship Transfers: A Playbook Borrowed from Iran
  1. Pre-Transfer Protocol: Tankers darken their transponders and dim lights to evade radar. They converge at designated meeting points 3,000–4,000 meters apart before entering the Strait.
  2. Navigation Control: The U.S. military monitors progress via a series of waypoints, ensuring vessels maintain spacing to avoid Iranian interception.
  3. The Transfer: Once past Iran’s claimed “control zone,” tankers dock side-by-side with VLCCs. Smaller vessels depart empty, while loaded VLCCs continue to markets in Asia and Europe.
  4. Post-Transfer Security: Approved ships remain in contact with the U.S. Navy’s Cooperation Office in Bahrain throughout transit.

This method obscures the origin of oil, making it harder for Iran to target specific cargoes. “It’s like playing whack-a-mole,” said Noam Raydan, a maritime risk specialist at the Washington Institute. “Iran can’t easily identify which ships are carrying Gulf crude versus Iranian oil.”

“The Iranians operate in stealth mode—two ships at a time. The U.S. is doing it at scale, with military-grade coordination. That changes the game.”

— Noam Raydan, Washington Institute for Near East Policy

Dangers of the Operation: Collisions, Attacks, and Unintended Consequences

1. Iranian Retaliation

Iran has repeatedly warned it will block the Strait of Hormuz if oil flows are disrupted. While the transfers occur in international waters, Raydan cautions: “Iran can still use drones, fast boats, or even mines to disrupt these operations. There’s no guarantee of safety.”

1. Iranian Retaliation

Last weekend, an unknown projectile struck a tanker off Oman, causing a minor fuel leak but no casualties, according to Vanguard Maritime. The vessel’s involvement in transfers was not confirmed.

2. Operational Hazards

With transponders off and navigation lights dimmed, collisions become a serious risk. “At night, with 3,000 meters between ships, you’re playing Russian roulette,” said an anonymous maritime operator with experience in the region.

Ships must undergo rigorous vetting, including:

  • GPS tracking data submission
  • Ownership transparency
  • Cargo documentation
  • Acceptance of random inspections

3. Market Distortions

The operation could artificially inflate Gulf oil exports, potentially destabilizing global prices. While the U.S. claims the goal is to protect producers, analysts warn it may flood markets if demand doesn’t keep pace.

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Key Participants: Gulf Producers and U.S. Military Coordination

The operation relies heavily on Gulf producers, particularly:

Company Role Recent Activity ADNOC (UAE) Primary oil exporter Participated in 2.3 million barrels transfer near Sohar on June 6 (per TankerTrackers) Kuwait Oil Tanker Company Logistics provider Active in transfers; no recent volume details confirmed U.S. Navy (Bahrain Cooperation Office) Operational control Monitors all approved vessels via satellite and radar

Neither ADNOC nor the Kuwait Oil Tanker Company responded to requests for comment. The U.S. military’s involvement remains officially unconfirmed, though sources describe it as “a classified but highly coordinated effort.”

Global Energy Implications: A New Phase in the Oil Wars?

This operation marks a strategic shift in how the U.S. protects Gulf oil flows. Historically, Washington relied on naval patrols and diplomatic pressure to deter Iranian interference. Now, it’s actively facilitating the very tactics Iran uses—suggesting a recognition that traditional methods are insufficient.

Global Energy Implications: A New Phase in the Oil Wars?

Analysts draw parallels to the 1980s Tanker War, when Iran and Iraq targeted oil shipments in the Strait. Then, as now, the risk of escalation looms. “This isn’t just about moving oil—it’s a message to Tehran,” said Clare Lopez, a former CIA operations officer specializing in Iran. “The U.S. is saying, ‘We’ll outmaneuver you in your own game.'”

“The Strait of Hormuz is the world’s most dangerous chokepoint. By adopting Iran’s playbook, the U.S. is essentially saying, ‘We’re raising the stakes.'”

— Clare Lopez, former CIA operations officer

What to Watch: The Strait’s Next Moves

The operation’s success hinges on three critical factors:

  1. Iran’s Response: Will Tehran escalate with drone strikes, fast-boat attacks, or mine-laying? The June 9 Apache downing suggests heightened tensions.
  2. Market Reaction: Will the increased Gulf exports stabilize prices or flood markets? The International Energy Agency will track inventory levels closely.
  3. U.S. Escalation: Could this operation lead to broader military involvement if Iran retaliates? The June 13 U.S. airstrikes in Syria/Iraq may signal a willingness to respond aggressively.

Next Checkpoint: The U.S. military’s Central Command is expected to release its June activity report by June 25, which may include details on Strait operations. Meanwhile, OPEC will convene on July 1 to discuss production quotas—potentially influenced by these transfers.

Key Questions Answered

Question Answer Is this legal? Yes, under international law. Ship-to-ship transfers in international waters are permitted, though Iran disputes its territorial claims in the Strait. How does this differ from Iran’s operations? Iran uses small-scale, decentralized transfers. The U.S. operation is military-coordinated, involves larger volumes, and occurs in designated zones under U.S. surveillance. Could this trigger war? Unlikely, but risks escalation. The U.S. has denied direct involvement, but the operation’s scale suggests a deliberate provocation to deter Iranian blockades. Which countries benefit most? Gulf producers (UAE, Kuwait, Saudi Arabia) avoid Iranian retaliation. Buyers in Asia (China, India) and Europe gain steady supply.

This operation underscores the high-stakes game being played in the Strait of Hormuz—a waterway through which 20% of global oil passes daily. As tensions rise, the risk of miscalculation grows. What do you think: Is this a smart deterrent, or a recipe for conflict?

Share your thoughts in the comments below.

Editor-in-Chief

Editor-in-Chief

Daniel Richardson is the Editor-in-Chief of Archysport, where he leads the editorial team and oversees all published content across nine sport verticals. With over 15 years in sports journalism, Daniel has reported from the FIFA World Cup, the Olympic Games, NFL Super Bowls, NBA Finals, and Grand Slam tennis tournaments. He previously served as Senior Sports Editor at Reuters and holds a Master's degree in Journalism from Columbia University. Recognized by the Sports Journalists' Association for excellence in reporting, Daniel is a member of the International Sports Press Association (AIPS). His editorial philosophy centers on accuracy, depth, and fair coverage — ensuring every story published on Archysport meets the highest standards of sports journalism.

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