Iran's Oil Brokers Feel the Pinch as Sanctioned Oil Dries Up

For years, Iran's oil brokers have managed to evade sanctions by selling oil to China through a complex web of middlemen and front companies. But times are getting tough for these brokers, known as 'trustees,' who have been accused of skimming profits from the state.

The Iranian government had stockpiled oil in anticipation of a naval blockade, which has prevented tankers from leaving the Gulf for 10 weeks. The remaining oil is being sold from stocks held afloat off Malaysia and China, with 90% of Iran's crude exports historically going to China.

Chinese buyers have been willing to take on the risk of US sanctions in exchange for a discount on the purchase price of the oil. However, the system has depended on a blind eye being turned to these transactions as they pass through the financial system.

The trustees, who are closely connected to the ruling clerical elite, face severe criticism from within the regime and from Iranian MP Hussein Samsami, who accused one trustee of misappropriating 56 million barrels of oil. The US Treasury has also launched an operation to target the network of front companies and financial institutions used by the trustees.