An investigation found that Myanmar’s military-linked authorities helped disguise Iranian jet fuel as South African diesel in import documents to circumvent sanctions
A December 2025 shipment involved about 113,000 barrels of Iranian jet fuel under a $15.8 million contract, while a separate May 2025 deal covered 202,000 barrels worth about $26 million
The findings highlight how misleading cargo descriptions, import approvals and payment arrangements enabled Iranian fuel to reach Myanmar despite US restrictions on its aviation-fuel supply chain and Iranian petroleum purchases
Myanmar’s military-backed authorities helped disguise imports of Iranian jet fuel by labelling the cargo as South African diesel in official paperwork, a Reuters investigation published on Monday found, citing contracts, regulatory correspondence, shipping records and satellite imagery.
In December 2025, the US-sanctioned tanker Reef arrived in Myanmar waters carrying about 113,000 barrels of Iranian jet fuel under documents describing the shipment as South African diesel. Myanmar-based energy broker Dynamic Wave had agreed to purchase the cargo from Thailand’s Tawan-Oil Trading under a $15.8 million contract, according to documents reviewed by Reuters.
United Nations trade data and shipping analytics provider Vortexa showed no diesel trade between South Africa and Myanmar in 2025. Satellite imagery and analysis by SynMax Intelligence traced the tanker’s journey from Iran’s Bandar Abbas port to Southeast Asia.
How The Cargo Was Relabelled
Days before the shipment arrived, Myanmar’s foreign exchange regulator said it would issue import documents describing the cargo as diesel “instead of jet fuel”, according to a letter dated November 30, 2025. The letter also authorised Dynamic Wave and its client, National Energy Prime Aviation Services Company, to pay Tawan for the shipment.
The document did not explain why the cargo was being mislabelled. Neither Dynamic Wave nor National Energy Prime Aviation Services, which is partly owned by Myanmar’s military-backed government, responded to Reuters’ questions. Myanmar government representatives, the foreign exchange regulator and Iran’s Foreign Ministry also did not respond to Reuters.
The December shipment was not an isolated case. In May 2025, Dynamic Wave agreed to purchase 202,000 barrels of fuel described in a contract as South African diesel, with payment of $26 million directed to Tawan’s account at Siam Commercial Bank in Thailand.
The fuel’s recorded density matched jet fuel specifications rather than diesel sold in Southeast Asia, according to an expert consulted by Reuters and data from Platts. Its price was also more than 50% above a global diesel benchmark. Shipping records showed that the tanker Noble subsequently arrived in Yangon carrying nearly 200,000 barrels of Iranian jet fuel.
Sanctions Evasion
The purchases took place despite US restrictions on Myanmar’s aviation-fuel supply chain and sanctions covering Iranian petroleum products. In August 2023, the US Treasury expanded its authority to impose sanctions on foreign individuals and entities operating in Myanmar’s jet-fuel sector, citing the military’s airstrikes against civilians following the 2021 coup.
The United Nations has documented the military’s use of airstrikes in Myanmar’s civil conflict. Jet fuel is critical to its ability to operate military aircraft, making the supply chain a focus of international sanctions.
The December shipment’s payment was to be transferred to Tawan’s account at Siam Commercial Bank. A 2024 UN report identified Tawan as a jet-fuel supplier to Myanmar’s military and described the bank as a major facilitator of military procurement. The bank subsequently said its Myanmar-related transactions were legitimate and unconnected to the arms trade.
The investigation could not establish whether the bank knew the nature of Tawan’s business. The bank, Tawan and Thai regulators did not respond to its latest questions.
The findings illustrate how cargo descriptions, import documentation and payment arrangements can obscure the origin and nature of sanctioned fuel. Although the restrictions have raised the cost and complexity of Myanmar’s purchases, Iranian jet fuel continued to reach the country in 2026.
