Iran's Mohsen Rezaei names the US-assisted Gulf oil shuttle a target as Hormuz freight costs rise

12 October 2026

Mohsen Rezaei, described by Al Jazeera as Iran's security chief, said on Sunday night (11 October) that a system in which smaller vessels move Gulf crude to larger tankers is now an explicit target for Tehran. Al Jazeera reported that he claimed the system is run by US Central Command with the help of the UAE military, and quoted him as saying: "You are smuggling, but the strait is under Iran's control, and we manage it." The Week reports that Tehran has said it will not step back until Washington meets seven conditions, including the lifting of the naval blockade. Al Jazeera reports that freight made up 25 to 30 per cent of the cost of Gulf crude, against 1 to 3 per cent before the war, according to the maritime intelligence firm Windward; that Gulf national oil companies have offered discounts of up to $35 a barrel below official selling prices; and that between 15 and 20 per cent of very large crude carriers (VLCCs) are tied up with a logistics system that relies on shuttle transfers. The Week gives the same freight and VLCC ranges. It also reports that the US naval blockade pushed Iran's own crude exports to zero in September.