Myanmar Regulator Signed Off on False Diesel Papers for 113,000 Barrels of Iranian Fuel

A tanker delivered 113,000 barrels of Iranian jet fuel to Myanmar in December 2025 while claiming to carry diesel.

Shipping data and internal documents reviewed by Reuters confirm the vessel, named Reef, carried fuel from the Iranian port of Bandar Abbas. The paperwork listed the cargo as South African diesel, a description that does not match any recorded trade between those two countries in 2025.

The order was placed by Dynamic Wave, a Myanmar-based energy broker, which signed a $15.8 million contract with Thailand's Tawan-Oil Trading. A letter from Myanmar's foreign exchange regulator, dated November 30, explicitly told the client that import papers would describe the delivery as diesel instead of jet fuel. The regulator gave no reason for the change and authorized the payment to Tawan.

The mislabeling was necessary to bypass US sanctions imposed on Myanmar's jet fuel industry in 2023. Washington cited the military's bombing of civilian targets during the civil war as the reason for the restrictions. Buying Iranian fuel also triggers broad American sanctions, making the trade sensitive for officials and businesses involved.

This was not the first time the two companies used this method. In May 2025, Dynamic Wave agreed to buy 202,000 barrels of alleged South African diesel from Tawan for $26 million. Fuel experts noted that the density listed on the invoice matched jet fuel, not diesel, and the price was more than 50% above global diesel benchmarks. The tanker Noble delivered just under 200,000 barrels to Yangon on June 17, having loaded in Bandar Abbas.

The client of Dynamic Wave, National Energy Prime Aviation Services Company, is part-owned by Myanmar's military-backed government. A 2024 UN report identified Tawan as a jet fuel supplier to the military and named Siam Commercial Bank, where Tawan held its account, as a major facilitator of military procurement. The bank maintains its transactions were legitimate and unconnected to the arms trade.

Myanmar's military seized power in 2021, triggering a civil war that the United Nations says has killed thousands of civilians. Reuters reported in January that Iran became the military's main jet fuel supplier between late 2024 and late 2025. Shipments have continued into 2026, providing Tehran with foreign currency and supporting air raids and commercial flights in Myanmar. Dynamic Wave, Tawan, and the Siam Commercial Bank did not respond to requests for comment.