Myanmar Regulators Authorized Diesel Labels for 113,000 Barrels of Iranian Jet Fuel

Myanmar's foreign exchange regulator approved import documents that described 113,000 barrels of Iranian jet fuel as diesel, a move designed to bypass US sanctions on the military's energy sector, according to documents reviewed by Reuters.

The tanker Reef, which is under US sanctions, arrived in Myanmar waters in December 2025. The vessel carried jet fuel from the port of Bandar Abbas in Iran, but the contract listed the cargo as South African diesel. This discrepancy allowed the shipment to avoid targeted sanctions imposed in 2023 on Myanmar's jet fuel industry, which Washington linked to the military's bombing of civilian targets.

Dynamic Wave, a Myanmar-based energy broker, signed a $15.8 million contract with Thailand's Tawan-Oil Trading for the shipment. The deal was structured to appear as a purchase of South African diesel, yet United Nations and Vortexa data show no such trade occurred between the two countries in 2025. Satellite tracking by SynMax Intelligence confirmed Reef's route from Iran to Southeast Asia.

A letter dated November 30, 2025, from Myanmar's foreign exchange regulator instructed the client of Dynamic Wave that import papers would describe the delivery as diesel instead of jet fuel. The regulator gave no reason for the change and authorized payments to Tawan. The client, National Energy Prime Aviation Services Company, is part-owned by Myanmar's military-backed government.

The activist group Justice for Myanmar obtained the letter from a junta-run server that was briefly accessible to the public. The group supports further sanctions on jet fuel imports. Reuters verified the file's existence by finding a dead link in search engine results and cross-referencing delivery dates with Iranian shipment records.

This was not the first time Myanmar used mislabeled paperwork for Iranian fuel. In May 2025, Dynamic Wave agreed to buy 202,000 barrels of supposed South African diesel from Tawan for $26 million. Analysis of the invoice showed fuel density matching jet fuel and a price more than 50% above the global diesel benchmark. The tanker Noble delivered just under 200,000 barrels to Yangon on June 17, 2025, after loading at Bandar Abbas.

The contract directed payments to Tawan's account at Siam Commercial Bank, Thailand's oldest bank. A 2024 United Nations experts' report identified Tawan as a jet fuel supplier to the Myanmar military and named the bank a major facilitator of military procurement. The bank maintains it follows anti-money-laundering laws and that its transactions were legitimate. Neither Dynamic Wave, Tawan, nor the banks responded to requests for comment.

Myanmar's military seized power in 2021, triggering a civil war. The United Nations reported in August 2026 that air attacks have killed thousands of civilians. Iran has been the military's main jet fuel supplier since October 2024, providing revenue for Tehran while supporting both commercial flights and air raids in Myanmar.