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Despite persistent international sanctions, Iran managed to sustain significant crude oil exports between January 2023 and March 2025, totaling approximately 268.5 million barrels. This continued export activity—entirely sourced from Iranian production—demonstrates Tehran’s resilience and strategic adaptability in circumventing global pressure.
A striking feature of Iran’s export strategy is its overwhelming reliance on Kharg Island, which accounted for 96.6% of all shipments and 95.3% of terminal usage during this period. These figures highlight the island’s pivotal role in Iran’s oil logistics infrastructure and its strategic value in sustaining flows amid sanctions.
To maximize efficiency and reduce operational risk, Iran leaned heavily on Very Large Crude Carriers (VLCCs), which carried over 91% of total export volume. This approach not only enabled the country to move large volumes per voyage but also likely minimized exposure to maritime interdiction. Additionally, 99.8% of the cargo consisted of crude oil, underscoring Iran’s reliance on its primary hydrocarbon asset.
On the demand side, Iran’s exports were heavily concentrated in Asia, where geopolitical alignment and logistical flexibility have facilitated continued trade. Singapore led all destinations with 60% of import volumes, followed by China (25%) and Malaysia (6%). Ports such as Dongjiakou and Lanshan in China—known hubs for blending and storage—played a crucial role in the discreet rebranding of Iranian crude before it re-entered global markets under different identities.
These trade patterns are deeply reflective of shifting geopolitical realities. Iran’s ability to sustain oil exports in defiance of sanctions underscores the limits of Western enforcement, particularly in the maritime domain. Its strategic eastward pivot—especially toward China—mirrors broader geoeconomic realignments tied to Beijing’s energy security needs and its Belt and Road Initiative. This alignment has granted Iran sustained access to major energy markets despite sustained efforts to economically isolate it.
However, recent data from March 2025 signals potential cracks in this model. Monthly exports fell to 9.7 million barrels, down 0.82% from February and a sharp 31% year-over-year drop compared to March 2024. This downturn coincides with the U.S. announcement of renewed, tighter sanctions, specifically targeting Chinese-bound flows. These new measures reportedly focus on maritime insurers, ship registries, and logistics networks involved in Iranian oil transshipments—key enablers of Iran’s evasive strategies.
In essence, while Iran has proven remarkably resourceful in maintaining oil exports under pressure—leveraging maritime tactics and regional partnerships—the renewed sanctions appear to be exerting real pressure. If enforcement efforts intensify and China’s tolerance wanes under diplomatic pressure, March's decline could mark the beginning of a more constrained phase for Iranian crude.
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Creating a sustainable world requires us to embark on a journey towards a zero emission future, where every step is a commitment to preserve our planet for future generations.
Albert Greenway
Environmental Scientist, Sustainability Expert
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Increased Use of Renewable Energy:
Shipping companies are embracing renewable energy sources to power onboard systems and reduce emissions during port operations. Solar panels and wind turbines are being installed on vessels to generate clean energy, reducing reliance on auxiliary engines, and cutting down emissions. Shore power facilities in ports allow ships to connect to the electrical grid, eliminating the need for onboard generators while docked.
Collaboration and Industry Partnerships:
Recognizing that addressing emissions requires collective action, shipping companies, governments, and organizations have formed partnerships and collaborations. These initiatives focus on research and development, sharing best practices, and promoting knowledge transfer. Joint projects aim to develop and deploy innovative technologies, improve infrastructure, and create a supportive regulatory framework to accelerate the industry's transition towards a greener future. The Zero Emission Shipping - Mission Innovation.
To pave the way for a greener future in shipping, the availability of alternative fuels plays a vital role in their widespread adoption. However, this availability is influenced by factors such as port infrastructure, local regulations, and government policies. As the demand for cleaner fuels in shipping rises and environmental regulations become more stringent, efforts are underway to improve the accessibility of these fuels through infrastructure development, collaborations, and investments in production facilities.
Liquefied Natural Gas (LNG) infrastructure has seen significant growth in recent years, resulting in more LNG bunkering facilities and LNG-powered vessels. Nonetheless, the availability of LNG as a marine fuel can still vary depending on the region. To ensure consistent availability worldwide, there is a need for further development of LNG supply chains and infrastructure. For biofuels, their availability hinges on production capacity and the availability of feedstock. Although biofuels are being produced and utilized in various sectors, their availability as a marine fuel remains limited. Scaling up biofuel production and establishing robust supply chains are imperative to ensure wider availability within the shipping industry.Hydrogen, as a fuel for maritime applications, is still in the early stages of infrastructure development. While some hydrogen vessels have been tested or introduced in the first quarter of last year, the infrastructure required for hydrogen production and distribution needs further advancement.
Ammonia, as a marine fuel, currently faces limitations in availability. The production, storage, and handling infrastructure for ammonia need further development to support its widespread use in the shipping industry.Methanol, on the other hand, is already a commercially available fuel and has been used as a blend with conventional fuels in some ships. However, its availability as a standalone marine fuel can still be limited in certain regions. Bureau Veritas in October 2022 published a White Paper for the Alternative Fuels Outlook. This white paper provides a comprehensive overview of alternative fuels for the shipping industry, taking into account key factors such as technological maturity, availability, safety, emissions, and regulations.
Creating a sustainable world requires us to embark on a journey towards a zero emission future, where every step is a commitment to preserve our planet for future generations.
Albert Greenway
Environmental Scientist, Sustainability Expert
Increased Use of Renewable Energy:
Shipping companies are embracing renewable energy sources to power onboard systems and reduce emissions during port operations. Solar panels and wind turbines are being installed on vessels to generate clean energy, reducing reliance on auxiliary engines, and cutting down emissions. Shore power facilities in ports allow ships to connect to the electrical grid, eliminating the need for onboard generators while docked.
Collaboration and Industry Partnerships:
Recognizing that addressing emissions requires collective action, shipping companies, governments, and organizations have formed partnerships and collaborations. These initiatives focus on research and development, sharing best practices, and promoting knowledge transfer. Joint projects aim to develop and deploy innovative technologies, improve infrastructure, and create a supportive regulatory framework to accelerate the industry's transition towards a greener future. The Zero Emission Shipping - Mission Innovation.
To pave the way for a greener future in shipping, the availability of alternative fuels plays a vital role in their widespread adoption. However, this availability is influenced by factors such as port infrastructure, local regulations, and government policies. As the demand for cleaner fuels in shipping rises and environmental regulations become more stringent, efforts are underway to improve the accessibility of these fuels through infrastructure development, collaborations, and investments in production facilities.
Liquefied Natural Gas (LNG) infrastructure has seen significant growth in recent years, resulting in more LNG bunkering facilities and LNG-powered vessels. Nonetheless, the availability of LNG as a marine fuel can still vary depending on the region. To ensure consistent availability worldwide, there is a need for further development of LNG supply chains and infrastructure. For biofuels, their availability hinges on production capacity and the availability of feedstock. Although biofuels are being produced and utilized in various sectors, their availability as a marine fuel remains limited. Scaling up biofuel production and establishing robust supply chains are imperative to ensure wider availability within the shipping industry.Hydrogen, as a fuel for maritime applications, is still in the early stages of infrastructure development. While some hydrogen vessels have been tested or introduced in the first quarter of last year, the infrastructure required for hydrogen production and distribution needs further advancement.
Ammonia, as a marine fuel, currently faces limitations in availability. The production, storage, and handling infrastructure for ammonia need further development to support its widespread use in the shipping industry.Methanol, on the other hand, is already a commercially available fuel and has been used as a blend with conventional fuels in some ships. However, its availability as a standalone marine fuel can still be limited in certain regions. Bureau Veritas in October 2022 published a White Paper for the Alternative Fuels Outlook. This white paper provides a comprehensive overview of alternative fuels for the shipping industry, taking into account key factors such as technological maturity, availability, safety, emissions, and regulations.
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