Iran Plans to Block Illegal Oil Routes Through Strait of Hormuz

Mohammad Reza Naghdi an advisor to the commander-in-chief of Irans Islamic Revolutionary Guard Corps (IRGC) has said that the Iranian armed forces will soon move to block unauthorized routes used to transport oil illegally through the Strait of Hormuz.  He stated that these routes were created by "blasting and destroying rocky areas" within the strategic waterway's territory Fars news agency reported.

Naghdi claimed that the volume of oil being smuggled via these paths is "extremely small." He clarified that while the Strait remains open for legitimate shipping, "some use small vessels to smuggle oil and transfer it to tankers."

Naghdi underscored that the Strait of Hormuz remains "under the full control of the armed forces." He stated that this level of control will continue until what he described as "Iran’s legitimate demands" are met, though he did not specify what those demands entail.

Moscow Approves $1 Billion Loan to Iran

Russia has approved the release of a $1 billion loan to Iran. The funds will be  be transferred once the  Iranian officials decided  how the money should and in which sector will be spent, Fars News Agency reported on October 6.

Earlier today, Iranian President Masoud Pezeshkian spoke by phone with Russian President Vladimir Putin. Both leaders reaffirmed their commitment to expanding strategic cooperation, but it remains unclear whether they discussed the topic of the loan.

Reports indicate that, Iran’s Planning and Budget Organization is advocating for the loan to finance vehicle imports. The Oil Ministry, meanwhile, wants to use the funds to purchase equipment and machinery for the country’s energy sector. The Agriculture Ministry has proposed directing the money toward imports of essential goods.

The dispute has delayed the transfer. Because the government has not reached a final agreement on the loan’s allocation, Iranian authorities have yet to submit the bank-account details required for Russia to complete the transaction.

The $1 billion payment would represent the first installment of a planned $20 billion Russian credit line for Iran, first reported in June, Fars news agency reported. The broader financing package is expected to support Iranian development and imports while further strengthening economic ties between Tehran and Moscow.

In June, Iran also announced plans to establish a ruble trading board aimed at expanding financial cooperation with Russia and facilitating transactions in the two countries’ national currencies. An Iranian lawmaker said at the time that the $20 billion credit line would be issued in rubles and carry an annual interest rate of 6 percent.

The proposed loan comes as Iran and Russia continue to deepen their economic relationship. Both countries have sought to increase the use of their national currencies in bilateral trade, reducing their reliance on Western-controlled banking networks and the US dollar. Greater use of the ruble and rial could help the two governments mitigate the impact of sanctions.