Iran avoids US sanctions via ship-to-ship transfers of oil, may receive payment for months


A cargo ship unloads imported crude oil at the Qingdao crude oil terminal in China's eastern Shandong province on May 11, 2026.
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 cargo ship unloads imported crude oil at the Qingdao crude oil terminal in China's eastern Shandong province on May 11, 2026.
(photo credit: CN-STR / AFP via Getty Images)

Iran has been evading US sanctions and the blockade using a system of ship-to-ship transfers in which sanctioned ships laden with Iranian oil offload their cargo onto another ship in the water before it is sent to China, the Wall Street Journal reported on Wednesday. 

The ships receiving the oil are often part of Iran’s “shadow fleet,” a fleet of old, rusting tankers that obscure their owners and may switch their flags to those of countries with little shipping oversight to conceal their identities. Ships will often turn off their tracking device and may paint over identity numbers. 

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