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Iran's Revolutionary Guards Extend Control over Tehran's Oil Exports

Iranians drive as smog obscures the skyline in Tehran, Iran, 18 December 2024. EPA/ABEDIN TAHERKENAREH
Iranians drive as smog obscures the skyline in Tehran, Iran, 18 December 2024. EPA/ABEDIN TAHERKENAREH
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Iran's Revolutionary Guards Extend Control over Tehran's Oil Exports

Iranians drive as smog obscures the skyline in Tehran, Iran, 18 December 2024. EPA/ABEDIN TAHERKENAREH
Iranians drive as smog obscures the skyline in Tehran, Iran, 18 December 2024. EPA/ABEDIN TAHERKENAREH

Iran's Revolutionary Guards have tightened their grip on the country's oil industry and control up to half the exports that generate most of Tehran's revenue and fund its proxies across the Middle East, according to Western officials, security sources and Iranian insiders.

All aspects of the oil business have come under the growing influence of the Guards, from the shadow fleet of tankers that secretively ship sanctioned crude, to logistics and the front companies selling the oil, mostly to China, according to more than a dozen people interviewed by Reuters.
The extent of the Iranian Revolutionary Guard Corps' (IRGC) control over oil exports has not previously been reported.

Despite tough Western sanctions designed to choke Iran's energy industry, reimposed by former US President Donald Trump in 2018, Iran generates more than $50 billion a year in oil revenue, by far its largest source of foreign currency and its principal connection to the global economy.

Six specialists - Western officials and security experts as well as Iranian and trading sources - said the Guards control up to 50% of Iran's oil exports, a sharp increase from about 20% three years ago. The sources declined to be identified due to the sensitivity of the matter.

Three of the estimates were based on intelligence documents about Iranian shipping while others derived their figures from monitoring shipping activity by tankers and companies linked to the IRGC. Reuters was unable to determine the exact extent of the IRGC's control.

The IRGC's growing domination of the oil industry adds to its influence in all areas of Iran's economy and also makes it harder for Western sanctions to hit home - given the Guards are already designated as a terrorist organization by Washington.

Trump's return to the White House in January, however, could mean tougher enforcement of sanctions on Iran's oil industry. The country's oil minister said Tehran is putting measures in place to deal with any restrictions, without giving details.

As part of their expansion in the industry, the Guards have muscled in on the territory of state institutions such as the National Iranian Oil Company (NIOC) and its NICO oil trading subsidiary, according to four of the sources.

When sanctions hit Iran's oil exports years ago, the people running NIOC and the wider industry were specialized in oil rather than how to evade sanctions, added Richard Nephew, a former deputy special envoy for Iran at the US State Department.

"The IRGC guys were much, much better at smuggling, just terrible at oil field management, so they began to get a larger control of oil exports," said Nephew, who is now a researcher at Columbia University.
The IRGC, NIOC, NICO and Iran's foreign ministry did not respond to requests for comment.
RISK APPETITE
The IRGC is a powerful political, military and economic force with close ties to Supreme Leader Ali Khamenei.
The Guards exert influence in the Middle East through their overseas operations arm, the Quds Force, by providing money, weapons, technology and training to allies Hezbollah in Lebanon, Hamas in Gaza, Yemen's Houthis and militias in Iraq.
While Israel has killed a number of senior IRGC commanders over the past year, the oil specialists in its ranks have been able to continue their operations, two Western and two Iranian sources said.
The Iranian government began allotting oil, instead of cash, to the IRGC and Quds Force around 2013, according to Nephew.
The government was under budgetary pressure then because it was struggling to export oil due to Western sanctions imposed over Iran's nuclear program.
The IRGC proved adept at finding ways to sell oil even under sanctions pressure, said Nephew, who was actively involved in tracking Iranian oil activities then.
Iranian oil revenues hit $53 billion in 2023 compared with $54 billion in 2022, $37 billion in 2021 and $16 billion in 2020, according to estimates from the US government's Energy Information Administration.
This year, Tehran's oil output has topped 3.3 million barrels per day, the highest since 2018, according to OPEC figures, despite the Western sanctions.
China is Iran's biggest buyer of oil, with most going to independent refineries, and the IRGC has created front companies to facilitate trade with buyers there, all the sources said.
Oil export revenues are split roughly evenly between the IRGC and NICO, said one source involved in Iranian oil sales to China. The IRGC sells oil at a $1-$2 barrel discount to prices offered by NICO because buyers take a bigger risk buying from the Guards, the person said.
"It depends on a buyer's risk appetite, the higher ones will go for the IRGC, which the US designates as a terrorist group."
Two Western sources estimated that the IRGC offered an even bigger discount, saying it was $5 per barrel on average but could be as much as $8.
The oil is allocated directly by the government to the IRGC and Quds Force. It's then up to them to market and ship the oil - and work out a mechanism for disbursing the revenue, according to the sources and intelligence documents seen by Reuters.
NIOC gets a separate allocation.
CHINESE FRONT
One of the front companies used is China-based Haokun. Operated by former Chinese military officials, it remains an active conduit for IRGC oil sales into China, despite Washington hitting it with sanctions in 2022, two of the sources said.
The US Treasury said China Haokun Energy had bought millions of barrels of oil from the IRGC-Quds Force and was sanctioned for having "materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the IRGC-QF".
In one oil transaction dated March 16, 2021 involving Haokun and parties including Turkish company Baslam Nakliyat - which is under US sanctions for its trading links to the IRGC - a payment was processed via US bank JP Morgan and Turkish lender Vakif Katilim, according to the intelligence documents.
The transaction took place before the companies were sanctioned. Reuters has no indication JP Morgan or Vakif Katilim were aware of the Iranian connection - highlighting the risks of companies getting inadvertently caught up in the shadow trade.
JP Morgan declined to comment. Vakif Katilim said in a statement: "Our bank performs its activities within the framework of national and international banking rules."
Haokun declined to comment. Baslam did not respond to a request for comment.
'GHOST FLEET'
Quds Force commander Qassem Soleimani, who was killed in a US strike in Baghdad in 2020, had set up a clandestine headquarters and inaugurated that year for the unit's oil smuggling activities, initially staffed by former oil minister Rostam Ghasemi, according to the intelligence documents.
Reuters could not determine where all the oil money funneled through the IRGC goes. The IRGC headquarters and day-to-day operations has an annual budget of around $1 billion, according to assessments from two security sources tracking IRGC activities.
They estimated that the IRGC budget for Hezbollah was another $700 million a year.
"Exact figures remain undisclosed, as Hezbollah conceals the funds it receives. However, estimates are that its annual budget is approximately $700 million to $1 billion. Around 70%-80% of this funding comes directly from Iran," Shlomit Wagman, former director general of Israel’s Money Laundering and Terrorism Financing Prohibition Authority, said separately.
Hezbollah did not respond to a request for comment.
The former Secretary General of Hezbollah, Hassan Nasrallah, who was killed in an Israeli airstrike, said Iran provided the group's budget, including for salaries and weapons.
Iran's main tanker operator NITC, which previously played a key role in exports, also now provides services to the IRGC.
It executes ship-to-ship transfers of Iranian oil onto vessels operated by the IRGC to ship crude into China, according to sources and ship-tracking data. Such transfers are common practice to help disguise the origin of the oil tankers carry.
NITC did not respond to a request for comment.
In August, Israel's National Bureau for Counter Terror Financing, part of the country's defense ministry, imposed sanctions on 18 tankers it said were involved in transporting oil belonging to the Quds Force.
In October, the US Treasury slapped sanctions on 17 separate tankers it said formed part of Iran's "ghost fleet", outside of NITC vessels. It followed up with sanctions on a further 18 tankers on Dec. 3.

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Features

Rebuilding the Army: One of the Syrian Govt’s Greatest Challenges

Soldiers and police officers from the former Syrian regime handing in weapons last year to new security forces in Latakia, Syria. (Ivor Prickett for The New York Times)
Soldiers and police officers from the former Syrian regime handing in weapons last year to new security forces in Latakia, Syria. (Ivor Prickett for The New York Times)
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Rebuilding the Army: One of the Syrian Govt’s Greatest Challenges

Soldiers and police officers from the former Syrian regime handing in weapons last year to new security forces in Latakia, Syria. (Ivor Prickett for The New York Times)
Soldiers and police officers from the former Syrian regime handing in weapons last year to new security forces in Latakia, Syria. (Ivor Prickett for The New York Times)

When opposition factions in Syria came to power a year ago, one of their first acts was to dismiss all of the country’s military forces, which had been used as tools of repression and brutality for five decades under the rule of Bashar al-Assad and his family.

Now, one of the biggest challenges facing the nascent government is rebuilding those forces, an effort that will be critical in uniting this still-fractured country.

But to do so, Syria’s new leaders are following a playbook that is similar to the one they used to set up their government, in which President Ahmed al-Sharaa has relied on a tightknit circle of loyalists.

The military’s new command structure favors former fighters from Sharaa’s former Hayat Tahrir al-Sham group.

The Syrian Defense Ministry is instituting some of the same training methods, including religious instruction, that Sharaa’s former opposition group used to become the most powerful of all the factions that fought the Assad regime during Syria’s civil war.

The New York Times interviewed nearly two dozen soldiers, commanders and new recruits in Syria who discussed the military training and shared their concerns. Nearly all spoke on the condition of anonymity because the Defense Ministry bars soldiers from speaking to the media.

Several soldiers and commanders, as well as analysts, said that some of the government’s rules had nothing to do with military preparedness.

The new leadership was fastidious about certain points, like banning smoking for on-duty soldiers. But on other aspects, soldiers said, the training felt disconnected from the needs of a modern military force.

Last spring, when a 30-year-old former opposition fighter arrived for military training in Syria’s northern province of Aleppo, instructors informed roughly 1,400 new recruits that smoking was not permitted. The former fighter said one of the instructors searched him and confiscated several cigarette packs hidden in his jacket.

The ban pushed dozens of recruits to quit immediately, and many more were kicked out for ignoring it, according to the former fighter, a slender man who chain-smoked as he spoke in Marea, a town in Aleppo Province. After three weeks, only 600 recruits had made it through the training, he said.

He stuck with it.

He said he was taken aback by other aspects of the training. The first week was devoted entirely to Islamic instruction, he said.

Soldiers and commanders said the religious training reflected the ideology that the HTS espoused when it was in power in Idlib, a province in northwestern Syria.

A Syrian defense official, who spoke on the condition of anonymity because he was not authorized to speak publicly, said the government had not decided whether minorities would be allowed to enlist.

Syria’s leaders are relying on a small circle of trusted comrades from HTS to lead and shape the new military, several soldiers, commanders and recruits said.

The Syrian Defense Ministry did not respond to a detailed list of questions or repeated requests for comment.

After abolishing conscription, much hated under the Assad regime, the new military recruited volunteers and set qualifications like a ninth-grade education, physical fitness and the ability to read.

But soldiers who had fought with the opposition in the civil war were grandfathered into the ranks, even if they did not fulfill all the criteria, according to several soldiers and commanders.

“They are bringing in a commander of HTS who doesn’t even have a ninth-grade education and are putting him in charge of a battalion,” said Issam al-Reis, a senior military adviser with Etana, a Syrian research group, who has spoken to many former opposition fighters currently serving in the military. “And his only qualification is that he was loyal to Ahmed al-Sharaa.”

Former HTS fighters, like fighters from many other factions, have years of guerrilla-fighting experience from the war to oust the Assad dictatorship. But most have not served as officers in a formal military with different branches such as the navy, air force and infantry and with rigid command structures, knowledge that is considered beneficial when rebuilding an army.

“The strength of an army is in its discipline,” Reis added.

Most soldiers and commanders now start with three weeks of basic training — except those who previously fought alongside Sharaa’s group.

The government has signed an initial agreement with Türkiye to train and develop the military, said Qutaiba Idlbi, director of American affairs at the Syrian Foreign Ministry. But the agreement does not include deliveries of weapons or military equipment, he said, because of American sanctions remaining on Syria.

Col. Ali Abdul Baqi, staff commander of the 70th Battalion in Damascus, is among the few high-level commanders who was not a member of the HTS. Speaking from his office in Damascus, Abdul Baqi said that had he been in Sharaa’s place, he would have built the new military in the same way.

“They aren’t going to take a risk on people they don’t know,” said the colonel, who commanded another opposition group during the civil war.

Some senior commanders said the religious instruction was an attempt to build cohesion through shared faith, not a way of forcing a specific ideology on new recruits.

“In our army, there should be a division focused on political awareness and preventing crimes against humanity and war crimes,” said Omar al-Khateeb, a law graduate, former opposition fighter and current military commander in Aleppo province. “This is more important than training us in religious doctrine we already know.”

*Raja Abdulrahim for The New York Times

Features

Winter Storm Rips through Gaza, Exposing Failure to Deliver Enough Aid to Territory

Palestinians cross a flooded street following heavy rain in Khan Younis, southern Gaza Strip, Thursday, Dec. 11, 2025. (AP Photo/Abdel Kareem Hana)
Palestinians cross a flooded street following heavy rain in Khan Younis, southern Gaza Strip, Thursday, Dec. 11, 2025. (AP Photo/Abdel Kareem Hana)
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Winter Storm Rips through Gaza, Exposing Failure to Deliver Enough Aid to Territory

Palestinians cross a flooded street following heavy rain in Khan Younis, southern Gaza Strip, Thursday, Dec. 11, 2025. (AP Photo/Abdel Kareem Hana)
Palestinians cross a flooded street following heavy rain in Khan Younis, southern Gaza Strip, Thursday, Dec. 11, 2025. (AP Photo/Abdel Kareem Hana)

Rains drenched Gaza’s tent camps and dropping temperatures chilled Palestinians huddling inside them Thursday as storm Byron descended on the war-battered territory, showing how two months of a ceasefire have failed to sufficiently address the spiraling humanitarian crisis there.

Children’s sandaled feet disappeared under opaque brown water that flooded the camps. Trucks moved slowly to avoid sending waves of mud toward the tents. Piles of garbage and sewage turned to waterfalls.

“We have been drowned. I don’t have clothes to wear and we have no mattresses left,” said Um Salman Abu Qenas, a mother displaced from east of Khan Younis to a tent camp in Deir al-Balah. She said her family could not sleep the night before because of the water in the tent, The AP news reported.

Aid groups say not enough shelter aid is getting into Gaza during the truce. Figures recently released by Israel's military suggest it has not met the ceasefire stipulation of allowing 600 trucks of aid into Gaza a day, though Israel disputes that finding.

“Cold, overcrowded, and unsanitary environments heighten the risk of illness and infection,” said the UN agency for Palestinian refugees, UNRWA, in a terse statement posted on X. “This suffering could be prevented by unhindered humanitarian aid, including medical support and proper shelter."

Rains falling across the region wreak havoc in Gaza Sabreen Qudeeh, also in the Deir al-Balah camp, said her family woke up to rain leaking from their tent's ceiling and water from the street soaking their mattresses. “My little daughters were screaming and got shocked when they saw water on the floor,” she said.

Ahmad Abu Taha, a Palestinian man in the camp, said there was not a tent that escaped the flooding. “Conditions are very bad, we have old people, displaced, and sick people inside this camp,” he said.

In Israel, heavy rains fell and flood warnings were in effect in several parts of the country — but no major weather-related emergencies were reported as of midday.

The contrasting scenes with Gaza made clear how profoundly the Israel-Hamas war had damaged the territory, destroying the majority of homes. Gaza’s population of around 2 million is almost entirely displaced and most people live in vast tent camps stretching for miles along the beach, exposed to the elements, without adequate flooding infrastructure and with cesspits dug near tents as toilets.

The Palestinian Civil Defense, part of the Hamas-run government, said that since the storm began they have received more than 2,500 distress calls from citizens whose tents and shelters were damaged in all parts of the Gaza Strip.

Not enough aid getting in Aid groups say that Israel is not allowing enough aid into Gaza to begin rebuilding the territory after years of war.

Under the agreement, Israel agreed to comply with aid stipulations from an earlier January 2025 truce, which specified that it allow 600 trucks of aid each day into Gaza and an agreed-upon number of temporary homes and tents. It maintains it is doing so, though AP has found that some of its own figures call that into question.

COGAT said Dec. 9, without providing evidence, that it had “lately" let 260,000 tents and tarpaulins into Gaza and over 1,500 trucks of blankets and warm clothing. The Shelter Cluster, an international coalition of aid providers led by the Norwegian Refugee Council, sets the number lower.

It says UN and international NGOs have gotten 15,590 tents into Gaza since the truce began, and other countries have sent about 48,000. Many of the tents are not properly insulated, the Cluster says.

Amjad al-Shawa, Gaza chief of the Palestinian NGO Network, told Al Jazeera Thursday that only a fraction of the 300,000 tents needed had entered Gaza. He said that Palestinians were in dire need of warmer winter clothes and accused Israel of blocking the entry of water pumps helpful to clear flooded shelters.

"All international sides should take the responsibility regarding conditions in Gaza,” he said. “There is real danger for people in Gaza at all levels.”

Senior Hamas official Khaled Mashaal said that many people’s tents have become worn out after the two-year war, and people cannot find new places to shelter. He said Gaza also needs the rehabilitation of hospitals, the entry of heavy machinery to remove rubble, and the opening of the Rafah crossing — which remains closed after Israel said last week it would open in a few days.

COGAT did not immediately respond to a request for comment on the claims that Israel was not allowing water pumps or heavy machinery into Gaza.

Ceasefire at a critical point Mashaal, the Hamas official, called for moving to the second, more complicated phase of the US-brokered ceasefire.

“The reconstruction should start in the second phase as today there is suffering in terms of shelter and stability,” Mashaal said in comments released by Hamas on social media.

Regional leaders have said time is critical for the ceasefire agreement as mediators seek to move to phase 2. But obstacles to moving forward remain.

Prime Minister Benjamin Netanyahu’s office said Wednesday that the militants needed to return the body of a final hostage first.

Hamas has said Israel must open key border crossings and cease deadly strikes on the territory.

Features

Ukraine Hasn’t Held Elections since Russia’s Full-scale Invasion. Here’s Why

President of Ukraine Volodymyr Zelensky speaks to press before his meeting with President of Cyprus in Kyiv on December 4, 2025, amid the Russian invasion of Ukraine. (Photo by Genya SAVILOV / AFP)
President of Ukraine Volodymyr Zelensky speaks to press before his meeting with President of Cyprus in Kyiv on December 4, 2025, amid the Russian invasion of Ukraine. (Photo by Genya SAVILOV / AFP)
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Ukraine Hasn’t Held Elections since Russia’s Full-scale Invasion. Here’s Why

President of Ukraine Volodymyr Zelensky speaks to press before his meeting with President of Cyprus in Kyiv on December 4, 2025, amid the Russian invasion of Ukraine. (Photo by Genya SAVILOV / AFP)
President of Ukraine Volodymyr Zelensky speaks to press before his meeting with President of Cyprus in Kyiv on December 4, 2025, amid the Russian invasion of Ukraine. (Photo by Genya SAVILOV / AFP)

Ukrainian President Volodymyr Zelenskyy has rejected suggestions that he is using the war as an excuse to cling to power, saying he is ready to hold elections if the US and other allies will help ensure the security of the poll and if the country's electoral law can be altered.

Zelenskyy’s five-year term was scheduled to end in May 2024, but elections were legally put off due to Russia’s full-scale invasion. That has become a source of tension with US President Donald Trump, who has criticized the delay as he pushes Zelenskyy to accept his proposals for ending the war.

Zelenskyy responded to that criticism on Tuesday, saying he was ready for elections.

“Moreover, I am now asking — and I am stating this openly — for the United States, possibly together with our European colleagues, to help me ensure security for holding elections,” he told reporters on WhatsApp. “And then, within the next 60–90 days, Ukraine will be ready to hold them.”

Until now, Zelenskyy has declined to hold an election until a ceasefire is declared, in line with Ukrainian law that prevents a poll from being held when martial law is in effect. Ukrainians largely support that decision.

Here is a look at why Ukraine has not been able to hold elections so far:

A wartime election would be illegal

Ukraine has been under martial law since February 2022, when Russia launched its full-scale invasion. The country’s constitution provides for martial law in wartime, and a separate law bars the holding of elections while it remains in force.

Beyond being illegal, any nationwide vote would pose serious security risks as Russia bombs Ukrainian cities with missiles and drones. With roughly one-fifth of the country under Russian occupation and millions of Ukrainians displaced abroad, organizing a nationwide ballot is also widely seen as logistically impossible.

It would also be difficult to find a way for Ukrainian soldiers on the front line to cast their votes, The Associated Press said.

Although Zelenskyy’s term formally expired in May 2024, Ukraine's constitution allows him to legitimately remain in office until a newly elected president is sworn in.

What Trump said

In an interview with Politico published on Tuesday, Trump said it was time for Ukraine to hold elections.

“They’re using war not to hold an election, but, uh, I would think the Ukrainian people ... should have that choice. And maybe Zelenskyy would win. I don’t know who would win.

“But they haven’t had an election in a long time. You know, they talk about a democracy, but it gets to a point where it’s not a democracy anymore.”

Trump's comments on elections echo Moscow's stance. The Kremlin has used Zelenskyy’s remaining in power after his expired term as a tool to cast him as an illegitimate leader.

What Zelenskyy said Zelenskyy reiterated previous statements that the decision about when to hold elections was one for the Ukrainian people, not its international allies.

The first question, he said, is whether an election could be held securely while Ukraine is under attack from Russia. But in the event that the US and other allies can guarantee the security of the poll, Zelenskyy said he is asking lawmakers to propose legal changes that would allow elections to be held under martial law.

“I’ve heard it suggested that we’re clinging to power, or that I’m personally holding on to the president’s seat, that I’m clinging to it, and that this is supposedly why the war is not ending. This, frankly, is a completely absurd story.”

Zelenskyy has few political rivals

Holding elections in the middle of a war would also sow division in Ukrainian society at a time when the country should be united against Russia, Zelenskyy has said.

One potential candidate who could challenge Zelenskyy in an election is former army chief Valerii Zaluzhnyi, the current Ukrainian ambassador to Britain. Zaluzhnyi has denied plans to enter politics, though public opinion surveys show him as a potential Zelenskyy rival.

Petro Poroshenko also is a key political rival of Zelenskyy’s and the leader of the largest opposition party. He is unlikely to run again, analysts said, but his backing of a particular candidate would be consequential.