Myanmar regulators relabeled Iranian jet fuel as diesel in $15.8 million deal

Myanmar's foreign exchange regulator authorized import documents that listed 113,000 barrels of Iranian jet fuel as diesel, according to records reviewed by Reuters. This administrative step allowed the fuel to enter the country while technically complying with import rules, masking the true nature of the cargo from international monitors. The transaction involved a $15.8 million contract signed by Dynamic Wave, a Myanmar-based energy broker, with Thailand's Tawan-Oil Trading.

The paperwork discrepancy became evident when analysts compared the shipping manifest against physical data. The contract described the cargo as South African diesel, but United Nations data showed no such trade occurred between the two nations in 2025. Satellite tracking by SynMax Intelligence confirmed the vessel, Reef, departed the Iranian port of Bandar Abbas. The ship arrived in Myanmar waters in December 2025 carrying the sanctioned jet fuel.

Washington imposed targeted sanctions on Myanmar's jet-fuel sector in 2023. These measures cited the military's bombing of civilian targets during the campaign against the rebel-led insurgency. Broader American sanctions also apply to anyone purchasing Iranian oil. The mislabeling served to obscure the source of the fuel, which is critical for both commercial flights and military air raids.

A letter dated November 30 from Myanmar's foreign exchange regulator instructed the client of Dynamic Wave to issue papers describing the delivery as diesel instead of jet fuel. The document authorized Dynamic Wave and its client, National Energy Prime Aviation Services Company, to pay Tawan. Justice for Myanmar, an activist group, obtained the letter from a junta-run server that was briefly public. The client company is part-owned by the military-backed government.

This was not the first time the two firms used this method. In May 2025, Dynamic Wave agreed to buy 202,000 barrels of alleged South African diesel from Tawan for $26 million. Platts data indicated the fuel density matched jet fuel, and the price sat more than 50% above the global diesel benchmark. The tanker Noble delivered nearly 200,000 barrels to Yangon on June 17. SynMax reported the vessel had loaded in Bandar Abbas and signaled a route toward Chittagong, Bangladesh, before reaching Myanmar.

Payments for the December shipment were directed to Tawan's account at Siam Commercial Bank. A 2024 UN experts' report identified the bank as a major facilitator of the military's procurement. The bank stated its transactions were legitimate and unconnected to the arms trade. Reuters could not determine if the bank knew the specific nature of Tawan's business.

The United States Treasury and Myanmar's foreign ministry did not respond to requests for comment. The military seized power in 2021, ending Aung San Suu Kyi's elected government. The UN reported in August that the military has killed thousands of civilians in air attacks. Myanmar's foreign ministry said the military exercises maximum restraint to avoid civilian harm.