By Noureddine Omar | 2025-09-11

Iran has turned once again to Babak Zanjani, a disgraced tycoon convicted of embezzlement and theft, in a bid to bolster oil exports amid looming international sanctions.

The decision underscores the Islamic Revolutionary Guard Corps' (IRGC) desperation to sustain revenues by any means, even if it means rehabilitating a man once sentenced to death for financial crimes, analysts told Al-Fassel.

Authorities have reportedly allocated oil cargoes to Zanjani through Naftiran Intertrade Company, a subsidiary of the Petroleum Ministry, using a cryptocurrency valued at $300 million as collateral.

The move is controversial because the Central Bank of Iran has previously declared such currencies to have no legal or financial backing.

Political analyst Abdul Nabi Bakkar said the regime's decision reflects the dire condition of Iran's treasury, forcing leaders to make choices once unthinkable.

"Zanjani is supposed to be serving a 20-year sentence after conviction for embezzlement. His freedom shows the regime's duplicity, as criminals are released to serve its interests while thousands languish in prison for speaking their minds," Bakkar told Al-Fassel.

Regime hypocrisy

Zanjani's case exposes a broader pattern of hypocrisy, the analysts said.

Public cryptocurrency trading is restricted in Iran.

But the IRGC operates freely in digital currency markets to generate liquidity, evade sanctions and advance nuclear ambitions.

"The IRGC again shows its own interests come before those of the Iranian people," said economist Mahmoud Mustafa.

He noted that Zanjani's crypto-backed deal illustrates how those currencies have become a tool for sanctions evasion.

This comes despite past hacks of Iranian trading platforms that wiped out roughly $100 million and led the Central Bank to suspend such activity.

That suspension, he said, was simply ignored when the IRGC saw its chance to profit.

Sanctions triggered

With Iran's oil exports dipping to 1.2 million barrels per day, the timing is critical.

The country now faces the reimposition of UN sanctions after Britain, France and Germany triggered the "snapback" mechanism on August 28.

They cited Iran's failure to meet the 2015 nuclear deal obligations.

All previous sanctions will automatically return unless a diplomatic agreement is reached within 30 days.

The Iranian regime has brought back "the very person with expertise and a complex network in this field," journalist Atta Hosseinian told Iran International.

He argued that Zanjani's return could only have been ordered "from the top" and reflects the leadership's determination to evade sanctions and preserve its financial lifelines.

The episode underscores Tehran's consistent disregard for both international law and domestic accountability, the analysts said.

By empowering a convicted embezzler while denying basic freedoms to its citizens, the regime risks not only harsher sanctions but also deeper alienation at home, they added.