Iran Says Trustees Misused $1.6 Billion in Oil Proceeds as Inflation Nears 90%
Updated
Updated · Al Jazeera English · Jul 28
Iran Says Trustees Misused $1.6 Billion in Oil Proceeds as Inflation Nears 90%
2 articles · Updated · Al Jazeera English · Jul 28
Summary
$1.6 billion of at least $11 billion held by Iran’s sanctioned-oil “trustees” was misused, the head of the General Inspection Organisation said, adding some suspects were arrested and others fled.
The disclosure points to corruption inside a system created to repatriate oil revenue under sanctions; one unnamed person allegedly stole more than $200 million, and officials did not identify who appointed the trustees.
94 billion euros in export earnings also remain unrepatriated by more than 20,000 exporters, including 225 people each owing over 50 million euros, underscoring wider hard-currency leakages.
About 90% inflation, a plunging rial and war-related supply disruptions have kept Iran’s economy functioning but increasingly unaffordable, with poverty projected to reach 45% and the middle class shrinking sharply.
Economists cited in the report say sanctions, conflict and entrenched corruption are leaving Iran chronically weakened: the state still pays wages and subsidizes essentials, but households absorb the cost.
With oil exports slashed and billions stolen by shadow brokers, how much longer can Iran's underground economy prevent total state collapse?
As the Strait of Hormuz chokes global shipping, will the crippling cost of regional infrastructure strikes ultimately fracture the global energy market?
Iran’s $1.6 Billion Trustee Scandal: How Sanctions Evasion, Shadow Networks, and the 2026 US Waiver Drove Economic Collapse and Hyperinflation
Overview
Iran’s shadow financial system, created to bypass tightening US and international sanctions, relied on unregulated 'trustees' to move oil revenues outside the formal banking sector. This opaque system led to a massive $1.6 billion scandal in summer 2026, sparking public outrage and a judicial crackdown. Meanwhile, a temporary US sanctions waiver briefly allowed legal oil sales, but deep-rooted corruption and leakage meant billions in export earnings still failed to return, worsening Iran’s budget deficit. As the government printed money to cover losses, the rial collapsed and inflation soared, pushing millions into poverty and fueling fears of social unrest.