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Iran’s $800M oil smuggling scheme uses tankers posing as Iraqi ships to dodge blockade

By Emma Bussey

Published April 29, 2026

Fox News
Trump reportedly rejects Iran's offer and keeps US blockade as their economy struggles Video

Sanctioned tankers disguised as Iraqi vessels are moving hundreds of millions of dollars in Iranian crude as President Donald Trump doubled down on the port blockade to squeeze Tehran’s oil lifeline, according to maritime intelligence.

Windward AI claimed Wednesday that a group of U.S.-sanctioned tankers are falsifying their location data to come off as anchored off Iraq while secretly loading Iranian oil at Iranian ports.

"Among the tankers spoofing their location in the area identified by Windward are four VLCCs: Alicia (IMO 9281695), RHN (IMO 9208215), Star Forest (9237632), and Aqua (IMO 9248473), using various flags, including fraudulent registries from Curacao and Malawi," the firm told Fox News Digital.

"For the four VLCCs, each VLCC can hold about 2 million barrels, so four of them would hold 8 million barrels, worth about $800 million at $100 per barrel," Windward said.

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A cargo ship sailing in the Persian Gulf toward the Strait of Hormuz

A cargo ship sails in the Persian Gulf toward the Strait of Hormuz on April 22, 2026. (AP Photo)

This came as Trump said Wednesday he will keep Iran under a naval blockade until it agrees to a deal addressing U.S. concerns about its nuclear program.

The U.S. administration has demanded that Iran dismantle its uranium enrichment program, while Tehran maintains that enrichment is a sovereign right and nonnegotiable, leaving little room for compromise.

Windward AI noted a "cluster" sanctioned tankers spoofing locations and sighted to the West of the Strait of Hormuz.

"A cluster of 10 Iran-trading, U.S.-sanctioned tankers is now spoofing its AIS location to falsely appear at anchorages off Basrah, Iraq, as the blockade continues to constrict Iranian ports," Windward explained.

"The vessels identified by Windward Multi-Source Intelligence are manipulating their signals to create a digital alibi," the intelligence firm claimed.

"By broadcasting fake destination messages to Iraqi ports, the tankers appear to be in Iraqi waters while covertly sailing to Iran to load sanctioned oil.

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"Once loaded, the vessels re-emerge on AIS to suggest a legitimate Iraqi origin for the cargo."

The U.S. blockade on Iranian ports began April 13 as part of a broader effort to pressure Iran into renegotiating limits on its nuclear program.

The blockade has unfolded in stages, starting with naval deployments and restricted maritime enforcement to limit Iran’s oil exports and economic activity.

Windward said more than two dozen tankers are currently confined west of Hormuz as of Wednesday, with the blockade cutting Iranian oil loadings and exports by more than half.

"This deceptive practice is under intensified scrutiny as the vessels are part of a larger group of more than two dozen tankers currently confined west of Hormuz," the firm said.

"The handysize tanker Paola and Long Range One tanker Adena, both signaling ‘Iraqi owner’ but linked to a sanctioned network."

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oil hub at Kharg Island

Former President Donald Trump weighs a potential attack on Iran's oil hub at Kharg Island amid expert predictions of market chaos. (Morteza Nikoubazl/NurPhoto)

The firm claimed three medium-range tankers, including Aqualis, Kush and Charminar, and the LPG carrier Royal H (IMO 9155341), which was newly sanctioned in February, are currently displaying "erratic voyage trails to suggest a loading at the Iraqi port of Khor Al Zubair."

"The tell-tale spoofing signs, including erratic patterns and fake port signals, highlight the shifting tactics used by the dark fleet as the blockade more than halves Iranian oil loadings and exports," the firm said.

Meanwhile. Iran’s Mohammad Ghalibaf slammed U.S. policymakers Wednesday, including Treasury Secretary Scott Bessent, over the impact of the U.S. blockade of Iranian ports.

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The parliamentary speaker cited "junk advice" and blamed the Treasury for pushing up oil prices.

"Three days in, no well exploded," Ghalibaf said in a post shared on X.

Emma Bussey is a breaking news writer for Fox News Digital. Before joining Fox, she worked at The Telegraph with the U.S. overnight team, across desks including foreign, politics, news, sport and culture. 

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