In the murky world of blacklisted oil trading, few people have dominated as much behind-the-scenes power as Hossein Shamkhani, scion of Ali Shamkhani, a longtime
senior advisor to Iran’s Supreme Leader Ayatollah Ali Khamenei. Bloomberg Investigates has uncovered how Shamkhani, trading under pseudonyms like “H” and “Hector,” developed a massive hidden empire that traded billions of dollars of Iranian and Russian crude, circumventing Western sanctions through a complex array of shell companies, ships, and money transfer systems. The case begins with Milavous Group Ltd., a commodities trading and shipping company based in Dubai that made a dramatic entry in 2022 by leasing luxury office space in one of the city’s most exclusive skyscrapers. As reported by Bloomberg on March 4, 2026, Milavous quickly scaled up to handle staggering volumes of product, becoming a key node in a network that spanned Iranian oil exports, Russian arms deals, and even a London hedge fund. According to information provided by the United States Treasury Department, cited in Bloomberg's article, this environment made tens of billions of dollars in profit from illegal trade in oil and petroleum products, often via methods like ship-to-ship transfers, blending with unauthorized oil types (such as Iraqi oil), and transshipping via Dubai and Oman. Shamkhani's low-key approach hid his significant impact. Bloomberg explained how Shamkhani's companies worked with international oil companies and banks on Wall Street, using citizenship-by-investment schemes to gain access to global financial networks in places like the UAE and Europe. The network's resilience stemmed from layers of obfuscation: over 115 affiliated companies, a shadow fleet of aging tankers flying flags of convenience, AIS jamming to evade tracking, and complex ownership structures that made tracing origins nearly impossible. Sanctions hit hard in mid-2025. As Bloomberg reported, the United States, United Kingdom, and European Union targeted large portions of the network, including Milavous Group Ltd. and related firms like Admiral Group. The US Treasury's July 30, 2025, action—its largest Iran-related package since 2018—designated over 50 individuals, entities, and more than 50 vessels linked to Shamkhani, accusing him of controlling a significant share of Iran's crude exports and using his father's political clout to amass wealth. The EU followed suit, blacklisting Shamkhani for his role in Russian oil trade and the shadow fleet. The UK moved to shut down associated London operations, and probes examined ties to banks like JPMorgan. Despite the crackdown, the network adapted. People familiar with the matter told Bloomberg that Shamkhani's operation reorganized, continuing to play a major role in the market by shifting routes, entities, and methods. The US Justice Department escalated in March 2026, filing civil forfeiture complaints to seize over $15 million tied to the network for allegedly breaching sanctions and funding IRGC-linked activities.The empire's implications run deeper than commerce. While ordinary Iranians grapple with economic hardship, currency collapse, fuel shortages, and now war—exacerbated by the deaths of Supreme Leader Khamenei and Ali Shamkhani in the initial US -Israeli strikes—elites like Hossein Shamkhani converted political connections into vast offshore wealth, including luxury properties in London, Dubai, and Europe, plus foreign passports. Bloomberg Investigates, through interviews with traders, investigators, and officials, lays bare the routes: oil loaded in Iran, transferred at sea, blended and relabeled, then sold to buyers in China, India, and beyond. "This $100 billion-plus shadow economy, if you will, has functioned like a state within a state, robust enough to support Iran's regime in spite of war." Shamkhani and Milavous have always denied any wrongdoing and any links to illegal activities. Yet, these revelations show how sanctions-evading networks succeed due to their complexity, political support, and the world's thirst for cheaper oil, all while the war rages on.
