Hossein Shamkhani, the son of Iran’s former national security chief, has emerged as a major player in the global oil market, reports Bloomberg. Despite tough US sanctions targeting Iranian and Russian oil, Shamkhani has managed to run international oil trading operations from the heart of Dubai.
Shamkhani’s fame is closely linked to his father, Ali Shamkhani, a prominent figure in Iran’s defense and security apparatus. Ali Shamkhani, who served as secretary of Iran’s Supreme National Security Council (SNSC) for nearly a decade, continues to wield influence as an adviser to Supreme Leader Ayatollah Ali Khamenei.
While the elder Shamkhani has maintained a strong presence in Iran’s political scene, his son has quietly built a business empire that now wields significant influence in global energy markets.
The Dubai Connection
According to Bloomberg, two years ago, a relatively unknown company, Milvus Group Ltd., leased a premium office space in a Dubai corporate tower. In just a few months, the firm had carved out a significant role in the global oil market. According to sources familiar with the company’s operations, Hossein Shamkhani, who operates under the pseudonym “Hector” in business circles, is the driving force behind Milvus, the report said.
From its strategic base in Dubai, Milvus has earned billions of dollars in revenue by selling commodities sourced from Iran, Russia and other countries. The firm reportedly operates by mixing and rebranding crude oil, often concealing the origin of the products and complicating efforts to enforce international sanctions.
Impact and remediation
Shamkhani’s network, which insiders have described as one of the largest oil trading entities in Iran, has managed to evade US sanctions through a combination of legal loopholes, strategic partnerships and a global network of shell companies. While Shamkhani himself is not subject to US sanctions, several ships believed to be under his control have been targeted by the US Treasury Department. However, the vast scale of his operations, involving more than 60 ships, has made it difficult for US authorities to fully dismantle his network.
Under Shamkhani’s guidance, Milvus has also expanded its reach into key international markets, reportedly supplying oil to global energy giants such as China’s Sinopec, Chevron and BP, the report said. However, these companies say they comply with all relevant laws and restrictions.
US government efforts to rein in Shamkhani’s activities have been complicated by the potential economic fallout. Iran’s oil exports are estimated to bring in $35 billion in annual revenue, so any significant disruption could have ramifications for global energy markets, especially during an election year in the US when fuel prices are under scrutiny.