Iranian President Masoud Pezeshkian confirmed his government has directed 20 million barrels of state-owned oil to the Islamic Revolutionary Guard Corps air force.
The oil-to-arms pipeline
Iran’s use of oil revenues to fund the IRGC is not new. The practice of allotting crude directly to the Revolutionary Guards for operational needs has been ongoing since at least 2013. What makes this allocation notable is the scale, and the timing.
The country’s fiscal budget for 2025/2026, which took effect on March 21, marks a dramatic escalation in military spending. Allocations for defense initiatives are reportedly three times greater than the previous year. Roughly one-third of projected oil export revenues, approximately $12.4 billion, has been earmarked for military and special projects.
Iran’s projected daily exports sit at around 1.85 million barrels.
