Iran Breaches US Naval Blockade with Covert LPG and Jet Fuel Exports as Tanker Burns Near Hormuz

Iran has managed to export approximately 4.1 million barrels of liquefied petroleum gas aboard at least eight tankers since July, breaching a US naval blockade of its ports, according to shipping data and sources cited by Reuters. A separate cargo of Iranian jet fuel reached Myanmar, and some LPG shipments were likely bound for China. Iranian crude exports, however, fell to zero in September according to data from Kpler, underscoring how the blockade has effectively halted the higher-volume crude trade while Tehran works around the edges.

To disguise the shipments, Iran has been concealing LPG and jet fuel cargoes among ship-to-ship transfers conducted by other Gulf producers off the coast of Oman, four maritime security sources told Reuters. The tactic exploits the growing volume of legitimate Gulf oil transfers in the area to mask Iranian activity.

Separately, the Iranian Navy reported that a tanker caught fire near the eastern approach to the Strait of Hormuz on October 16 after being found in a restricted area with its tracking systems disabled. The Iranian Navy described the vessel as a "rogue" tanker and warned that unauthorized movements in restricted routes create significant risks to other ships. TankerTrackers contested the Iranian framing, stating that at least five tankers carrying Iraqi oil have been damaged or destroyed by Iran during the conflict, with the most recent attack occurring on October 11, and cautioning against what it called a poorly informed narrative being advanced by analysts with limited technical insight.

Brent crude fell 0.56% to $105.33 a barrel on October 16 as President Trump floated the possibility of easing sanctions on oil-producing nations facing US restrictions, a potential supply signal that cooled prices. The FTSE 100 edged lower as oil held above $105 amid continued Middle East tensions.