Exclusive-The U.S. is using an Iranian smuggling tactic to sneak oil out of the Gulf - Finance news and analysis from Global Banking & Finance Review
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Exclusive-The U.S. is using an Iranian smuggling tactic to sneak oil out of the Gulf

Published by Global Banking & Finance Review

Posted on June 16, 2026

6 min read

· Last updated: June 16, 2026

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US Secretly Oversees Ship-to-Ship Oil Transfers in Gulf amid Iran Tensions

By Feras Dalatey , Jonathan Saul, Dmitry Zhdannikov and Edward Carron

US Military Operations and Ship-to-Ship Oil Transfers in the Gulf

DUBAI, June 16 (Reuters) - The United States military has overseen scores of secretive ship-to-ship oil transfers to keep Gulf energy exports flowing, using aerial and water drones as well as helicopters in an operation to guide convoys to awaiting tankers.

Locations and Scale of the Operation

The operation on the edge of the Strait of Hormuz employs a shuttling technique long used by Iran to skirt sanctions. Two specific locations where the oil transfers take place were identified by 11 people familiar with the operation – one off the coast of Fujairah in the United Arab Emirates and the other off Oman’s port of Sohar. It started in early May, and at least 92 ships have been involved in the transfers, according to shipping data and satellite imagery reviewed by Reuters.

As recently as June 11,17 pairs of ships could be seen carrying out simultaneous oil transfers at the two sites, according to satellite images reviewed by Reuters.

Incident Involving Apache Helicopter

An Apache helicopter downed by Iran on June 9, sparking retaliatory bombings by the U.S., was involved in the mission, according to four sources, including a former U.S. official with knowledge of the attack. Using satellite imagery, Reuters counted six pairs of tanker ships clustered together in a small area off the port of Sohar the day the Apache was shot down.

Reuters could not confirm what role the Apache played in the operation. In response to Reuters questions, a U.S. defense official said no Central Command forces are taking part in an offshore ship-to-ship oil transfer operation. Both crew members were rescued by a drone boat, U.S. officials said.

Secrecy and International Response

The extent of the ship-to-ship transfers, how they work, and the Apache’s role in the operation have not been previously reported. The White House referred questions to Centcom. The Iranian government did not respond to requests for comment about the transfer operation.

Risks and Strategic Importance of the Strait of Hormuz

The two spots where these transfers take place, in the Gulf of Oman near the exit of the Strait of Hormuz, are close to the boundaries drawn by the Persian Gulf Strait Authority, a new Iranian body established to manage the Hormuz Strait. Ships that fail to comply with Iran’s orders are at risk of drone and missile attack by the Islamic Revolutionary Guard Corps.

Attacks and Security Incidents

The Fujairah port itself has come under repeated Iranian fire during the time this U.S.-led operation has been underway. This past weekend, according to the British maritime risk management group Vanguard, an “unknown projectile” struck a tanker off the coast of Oman. Vanguard said in a statement that the crew was safe and that the impact caused some leakage of the cargo, but no environmental damage. It did not specify whether the tanker was involved in a ship-to-ship transfer.

Global Energy Impact

Iran responded to the U.S.-Israeli war by effectively closing the Strait of Hormuz, through which roughly a fifth of global oil consumption normally passes. That created the biggest global energy supply disruption in history and has spurred inflation around the world.

US Strategy and Oil Flow Restoration

The ship-to-ship transfers, though risky and inefficient, appear to be a part of the Trump administration’s efforts to help restore normal oil flows from the Gulf. U.S. President Donald Trump said the Strait of Hormuz would reopen Friday under a framework peace deal with Iran announced this week, but details remain vague. Reuters could not determine whether the announced deal had affected the oil transfers.

Iran’s Parallel Operations

A Reuters investigation published May 20 found that Iran has established its own system for ushering ships through the opposite side of the Strait, involving island checkpoints, diplomatic deals and sometimes fees.

Operational Details

Staggered Departures and Waypoints

STAGGERED DEPARTURES AND WAYPOINTS

The American transfer operations are fully controlled by the U.S. military, said eight of the sources, including a private security contractor who has been involved in the transfers.

Tankers must sail to a meeting point before they reach the strait, then stagger their departures so they are around 3,000 to 4,000 meters apart, according to one of the sources as well as satellite imagery. Their transponders are off and their lights are dimmed, according to four sources.

A series of waypoints allow the U.S. military to monitor the progress of the designated tankers, but the Americans are “obviously watching you all the time,” one of the sources said.

Transfer Process

When they pass through the strait, just beyond a zone that Iran has delineated as under its control, the tankers pull alongside the recipient ships, which are Very Large Crude Carriers, or VLCCs, to begin the oil transfers. These take between 24 and 40 hours to complete. The empty tankers then shuttle back through the strait and the newly loaded VLCCs sail onward.

Risks and Willing Participants

What makes this ship-to-ship operation possible is that there are a few shippers willing to sail their vessels through the strait to deliver the oil to the waiting tankers, despite the Iranian blockade.

But the operation is risky. “You just don't know when Iran might just decide to start using drones or even gunboats in order to prevent even those ships from transiting the strait,” said Noam Raydan, a senior fellow at Washington Institute who specializes in maritime risk and who reviewed Reuters’ findings.

Comparison to Iran’s Techniques

The ship-to-ship technique has been used by Iran for years to bypass sanctions, because it masks the source of the oil. The Iranians usually operate one pair of ships at a time, both to avoid detection and because its prewar exports were relatively small. The U.S.-led operation, which involves mass transfers, gives Gulf producers better protection from Iranian retaliatory attacks so they can move crude, condensate and petroleum products to international buyers.

Satellite Imagery Evidence

Reuters reviewed more than a dozen satellite images taken between May 2 and June 11 showing ship-to-ship tra

Key Takeaways

  • The U.S. is emulating Iran’s sanctioned oil‑smuggling tactics by conducting covert ship‑to‑ship oil transfers off Fujairah (UAE) and Sohar (Oman), using drones and helicopters to manage logistics — a method Iran has historically used to disguise oil origins (ofac.treasury.gov).
  • Since early May, at least 92 vessels have participated in these operations, with as many as 17 simultaneous transfers observed via satellite as recently as June 11 (axios.com).
  • An Apache helicopter downed by Iran on June 9—a mission linked to these operations—saw its crew rescued via a Navy drone boat in a first‑of‑its‑kind recovery; this underscores the risks of the operation and the U.S. military’s reliance on unmanned systems (axios.com).

References

Frequently Asked Questions

How is the US conducting secret oil transfers in the Gulf?
The US military uses drones, helicopters, and ship convoys to supervise ship-to-ship oil transfers at strategic locations off the coasts of Fujairah and Sohar.
Why are ship-to-ship oil transfers taking place in the Gulf of Oman?
The transfers ensure continued energy exports after Iran severely restricted passage through the Strait of Hormuz, disrupting global supply.
What risks are involved in these secret oil transfers?
Risks include possible drone and missile attacks from Iran, as well as damage from military incidents near the transfer sites.
Which locations are used for the US-led oil transfers?
Operations are mainly off the coast of Fujairah in the UAE and near Oman’s port of Sohar.
What effect did the closure of the Strait of Hormuz have on oil markets?
It caused the largest energy supply disruption in history, increasing inflation and hampering global oil flows.

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