Iran’s IRGC Is Working As Chinese Tool In Strait Of Hormuz? Exclusive From Intel Note

Last Updated:March 10, 2026, 17:42 IST

“The IRGC is using the Strait of Hormuz advantage. The waterway handles 20% of global oil, which is 20 million barrels per day,” according to the note

Iran’s Islamic Revolutionary Guard Corps (IRGC) is working as a Chinese tool in the Strait of Hormuz and funding its own proxy groups, according to the intelligence note accessed by News18.

“The IRGC is using the Strait of Hormuz advantage. The waterway handles 20% of global oil, which is 20 million barrels per day," according to the note.

How IRGC operates

The IRGC manages a 250–400 vessel ghost fleet of ageing tankers, exporting 1.4–1.8M barrels per day of Iranian crude and fuel via Hormuz. The IRGC issues warnings of massacres or spiking shipping insurance and rerouting costs globally, sustaining influence without full war. They use disruption tactics at sea by proxy conflicts involving Houthis in Red Sea.

“In December 2025, Iran’s oil exports were $45.7 billion with IRGC’s smuggling fleet, Iranian Tanker Company vessels, key to $3-billion monthly flows. This works as a dual military and economic tool, threatening closure to create fear in U.S. and Israeli actions," it said.

They use front companies and yuan and crypto payments to bypass U.S. banking restrictions. “Their core tactic involves sea transfers near Oman, UAE, and Malaysia to launder origins by claiming Malaysian oil. They use cutouts by change in hands and this ensures delivery to top buyer China without traceability," said sources.

IRGC ensures fleet vessels are disabled on radar, spoofs AIS signals, renames them frequently, and use flags of Panama and Comoros.

According to sources, IRGC controls 50% of Iran’s $70B annual oil exports as per 2025 estimate. They are generating $25–30B yearly via discounted sales which are $1–$8 below market, funding $1B IRGC budget and $700M to proxies like Hezbollah. IRGC Navy seizes foreign tankers 4M litres fuel worth $5.2M in December 2025 and detained crews were used for propaganda and ransom.

What intelligence sources say

“The IRGC is using everything very strategically, and they have full assessment of what is happening. The IRGC is becoming enemy of countries who want control, and their tactics provoke sanctions like U.S. naval intercepts and pushing for stricter shadow fleet targeting to cut IRGC funds," said sources.

“The IRGC is fuelling anti-Saudi and UAE alliances via disruptions and empowers IRGC-backed groups like Syria, which get 85K barrels per day. This arrangement is also important for China’s anti-Western axis by halting U.S. dominance in the Middle East. This also used to have strong relations between Iran-China ties via yuan-denominated trade," said sources.

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