Iranian oil empire under scrutiny

A global financial network stretching from London to Dubai is under increasing scrutiny as Western authorities investigate entities linked to Hossein Shamkhani, the son of a high-ranking Iranian official. Reports suggest that Shamkhani has connections to a network involved in commodities trading, hedge fund investments, and legal proceedings in British courts. While no wrongdoing has been legally established, the UK government and US authorities have intensified oversight of his activities.

London Hedge Fund faces scrutiny

One of the entities drawing attention is Ocean Leonid Investments, a hedge fund based in London’s Knightsbridge neighbourhood. The fund, incorporated in June 2022, specialises in trading oil, gas, and metals and has attracted talent from major firms such as Gunvor Group, Koch Industries, and Citadel.

A Bloomberg investigation reported that Ocean Leonid manages assets believed to be associated with Shamkhani, though the firm denies any direct connection to him. Official records show that the fund operates under ISFAD Fund LP, a Dubai-based entity, and its ownership structure remains opaque. While there is no evidence that Ocean Leonid has violated any laws, UK regulators are reportedly monitoring financial entities with potential ties to sanctioned oil trading activities.

UK crackdown on London-based trading firms

In a separate development, the UK government has moved to shut down Nest Wise Trading Ltd., a London-based entity linked to Shamkhani’s network. The UK Companies House issued a notice stating that the company failed to provide adequate ownership disclosure and could be dissolved within months if it does not comply with regulatory requirements.

Nest Wise Trading is reportedly associated with Dubai-based Nest Wise Petroleum LLC, which has been linked to the sale of petroleum products, fuels, ores, and industrial chemicals. UK authorities have not accused Nest Wise of wrongdoing, but the move is part of a broader crackdown on companies suspected of sidestepping oil trading restrictions.

A UK Foreign Office spokesperson declined to comment on the case, and representatives for Nest Wise and Shamkhani did not respond to media enquiries.

Legal dispute in London’s High Court

Meanwhile, an unrelated legal dispute involving parties with connections to Iranian petrochemical trading is unfolding in London’s High Court. Singapore-based Alliance Petrochemical Investment (API), which owns 60% of Iran’s Mehr Petrochemical Company (MHPC), has filed a claim against London-based investors Francesco Mazzagatti and Francesco Dixit Dominus. API alleges that the defendants diverted €144 million from the company through forged documents.

However, the defence contests the claim, arguing that the lawsuit is politically motivated and part of a broader strategy by Arshiya Jahanpour, a dual US-Iranian citizen. According to court filings, Jahanpour is described as the controlling force behind API and has been accused of facilitating transactions that may be subject to US sanctions laws. Jahanpour denies all allegations.

Reports have also linked Mehr Petrochemical Company (MHPC) to financial misconduct investigations in Iran, with allegations that the company owed $170 million in export currency to the Iranian government. Iranian authorities have not filed any formal charges, but state-run media previously reported internal disputes over control of MHPC, including intervention by Ali Shamkhani, Hossein Shamkhani’s father.

International oil trading networks under review

According to publicly available reports, transactions involving Starex Dis Ticaret Kimya Anonim Sirketi (Starex Turkey) have raised questions about Iranian oil shipments. Data from supply chain risk intelligence platforms indicate that Starex Turkey’s UAE counterpart received multiple shipments of petroleum products in 2023 and 2024, but no regulatory action has been taken against the company.

Reports have also highlighted Admiral Group Shipping Company, a UAE-based entity associated with Hossein Shamkhani. Some sources allege that Admiral Group has been involved in shipping crude oil from Iran and Russia, but no official sanctions have been imposed on the company itself.

Potential implications for UK energy security

The legal case involving API has drawn further attention because of its potential impact on UK energy security. The defendants, Mazzagatti and Dixit, are senior executives at Viaro Energy, which recently agreed to acquire UK North Sea gas assets from Shell and ExxonMobil. Some analysts have warned that prolonged legal proceedings could disrupt the transaction, but no regulatory intervention has been announced.

Legal experts have noted that corporate disputes involving international energy firms can have broader implications for investment confidence in the sector. However, no evidence suggests that the case will impact UK gas supplies directly.

Conclusion: Increased scrutiny of global oil trade

As Western governments tighten oversight of energy-related financial transactions, Shamkhani’s network and related entities are facing heightened scrutiny. While no formal charges have been brought against any of the key figures involved, ongoing legal battles and regulatory reviews suggest that authorities are closely watching Iran’s global oil trading strategies.

This article is based on publicly available reports, including Bloomberg investigations, UK corporate filings, and legal proceedings. All allegations remain contested, and no legal findings have been established against the individuals or entities mentioned. The parties involved have denied any wrongdoing.

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