An analyst believes that Iran’s decision to stop hiding its oil tanker fleet after seven years of doing so to evade US sanctions may be a signal that it wants to directly challenge Washington and its intensified wave of sanctions on the country.
Homayoun Falakshahi, a senior analyst working for energy data company Kpler, said on Tuesday that the decision to broadcast the exact location of Iranian oil tankers, which began earlier this month, could be a signal from Iran that it is no longer worried about US threats of confiscating its ships.
Since 2018 when it came under US sanctions, Iran has been using various tactics to evade the bans and sell its oil to customers in international markets.
A bulk of Iranian oil shipments have been delivered to private refiners in China, with reports suggesting tankers carrying those shipments normally switch off their Automatic Identification System (AIS) to avoid detection.
“The possibility is that Iran wanted to show that it is not frightened by the sanctions and by turning on the AIS, it wanted to challenge the US and any attempt to seize its ships,” Falakshahi told Iranian news agency ILNA.
He said, however, that the real motive behind Iran’s recent move is still unknown, adding that the decision could have been a response to recent UN sanctions on the country that allow inspection of its ships by other countries, or a signal from China that it would resume official oil purchases from Iran without any fear of US sanctions.
The analyst said the recent re-imposition of UN sanctions on Iran and the rising number of US sanctions on Chinese ships and ports could affect the Iranian oil supplies to China in the upcoming months.
However, he said that Iranian oil exports to China would rebound early next year after Beijing renews quotas given to small refineries for oil purchases from foreign suppliers.