Myanmar masked Iranian jet fuel as South African diesel to evade U.S. sanctions

An investigation revealed that Myanmar concealed the true origin and type of Iranian jet fuel by labeling it South African diesel in trade contracts and official paperwork. A December 2025 shipment of around 113,000 barrels was tied to a $15.8 million agreement between Myanmar-based Dynamic Wave and Thailand’s Tawan-Oil Trading, while the country’s foreign-exchange regulator authorized documents identifying the cargo as diesel.

A similar May 2025 transaction involved 202,000 barrels worth $26 million, with the tanker Noble delivering just under 200,000 barrels to Yangon, and satellite analysis confirming the fuel came from Iran. These deceptive practices help the military-linked aviation sector obtain fuel despite U.S. sanctions aimed at Iran’s petroleum exports and at Myanmar’s jet-fuel suppliers, which Washington says enable airstrikes against civilians.

The findings come as the United States has recently re-opened limited diplomatic contacts with Myanmar’s military-backed government, raising questions about how to balance engagement with continued pressure. The case illustrates the difficulty of enforcing sanctions when intermediaries and falsified documents obscure the supply chain.