Iran’s shadow oil revenue network has come under the spotlight after officials revealed that middlemen handling state funds had embezzled billions of dollars, with some fleeing the country, Iran International reported.The controversy has renewed attention on the “fiduciary” system – private companies and middlemen tasked with moving oil revenues outside the formal banking system to bypass international sanctions.Zabihollah Khodaeian, the head of Iran’s national watchdog, said on state television that one middleman alone failed to return $200 million before absconding. He also confirmed that 59 criminal cases have been filed against managers of these trusts, with some suspects already in custody and others on the run.Prosecutors also asked Interpol to issue red notices for 15 individuals linked to the network, Iranian media reported.The revelations drew sharp criticism from Majid Reza Hariri, president of the China Chamber of Commerce in Iran, who publicly questioned how such huge sums of money could disappear without accountability.“Who introduced these trustees? Who vouched for them? Why was no action taken against those who supported them?” he asked.Trustee arrangements emerged as a workaround after sanctions removed Iranian banks from the global financial system. Tehran turns to trusted intermediaries with access to foreign accounts to collect and transfer oil revenues, often through countries such as the United Arab Emirates, Turkey and Oman.While the system kept oil exports flowing, it also created a largely unregulated financial network that lacked transparency or oversight.Officials gave conflicting accounts of responsibility. Petroleum Minister Mohsen Paknejad said the ministry’s responsibility is to market crude oil, while the central bank oversees revenue deposits and transfers.The incident raises uneasy questions about a system built on trust rather than formal safeguards. The system has now cost the country billions of dollars.
