Hossein Shamkhani, the son of Iran’s former national security chief, has emerged as a major player in the global oil market, a Bloomberg report says. Despite stringent US sanctions targeting Iranian and Russian oil, Shamkhani has managed to run international oil trading operations from the heart of Dubai.
Shamkhani’s rise to prominence is inextricably linked to his father, Ali Shamkhani, a key figure in Iran’s defence and security apparatus. Ali Shamkhani, who served as the Secretary of Iran’s Supreme National Security Council (SNSC) for nearly a decade, continues to hold sway as an advisor to Supreme Leader Ayatollah Ali Khamenei.
While the elder Shamkhani has maintained a formidable presence in Iran’s political landscape, his son has quietly built a business empire that now commands significant influence in global energy markets.
The Dubai Connection
According to Bloomberg, two years ago, a relatively unknown company, Milavous Group Ltd, leased a premium office space in a Dubai corporate tower. Within months, the firm had carved out a substantial role in the global oil market. According to sources familiar with the company’s operations, Hossein Shamkhani, who operates under the pseudonym “Hector” in trading circles, is the driving force behind Milavous, the report stated.
From its strategic base in Dubai, Milavous has reportedly generated billions in revenue by selling commodities sourced from Iran, Russia, and other nations. The firm reportedly operates by blending and rebranding crude oil, often obscuring the origin of the products and complicating efforts to enforce international sanctions.
Influence and Evasion
Shamkhani’s network, described by insiders 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 vessels believed to be under his control have been targeted by the US Treasury Department. However, the sheer scale of his operations, involving over 60 ships, has made it difficult for US authorities to completely dismantle his network.
Milavous, under Shamkhani’s guidance, has also expanded its reach into major international markets, reportedly supplying oil to global energy giants like China’s Sinopec, Chevron, and BP, the report says. These companies, however, maintain that they comply with all relevant laws and sanctions.
The US government’s efforts to clamp down on Shamkhani’s activities have been complicated by the potential economic repercussions. With Iran’s oil exports estimated to generate $35 billion annually, any significant disruption could have ripple effects across global energy markets, particularly during an election year in the US when fuel prices are under scrutiny.
