Hong Kong has become a critical financial and logistical lifeline for Iran’s regime — helping move illicit oil, weapons technology and surveillance tools that fuel Tehran’s military machine and domestic repression, according to a bombshell report set for release Monday.
The 26-page report by the Committee for Freedom in Hong Kong Foundation, titled “Oil, Arms, and Cash: How Hong Kong Fuels the Iranian Regime,” alleges that dozens of Hong Kong-based companies have helped Iran evade Western sanctions while funneling billions of dollars into the hands of the Islamic Revolutionary Guard Corps and its terror proxies.
“Simply put, without Hong Kong’s help, Iran would not have the money and the missiles that make it so dangerous,” the report states.
“The evidence is consistent and damning,” the report says, citing “Hong Kong’s easy registration of shell companies, its globally connected banking sector, its secretive corporate services infrastructure, and the indifference of its government to Western law enforcement cooperation.”
The report details how Hong Kong-linked firms allegedly facilitated the shipment of Iranian crude oil to China through shadow fleets using deceptive ship-to-ship transfers and falsified cargo documents.
Since 2020, the US Treasury Department’s Office of Foreign Assets Control has designated at least 95 Hong Kong-incorporated entities for Iran-related sanctions violations, according to an appendix included in the report.
Among the cases cited was Hong Kong-based Petronix Energy Trading Ltd., which US authorities accused in February 2025 of purchasing “hundreds of thousands of metric tons of Iranian crude oil” for shipment to China.
The report also alleges Hong Kong has become a major hub for funneling Western-made electronics and drone components into Iran’s weapons programs.
Investigators cited battlefield forensic evidence allegedly linking Hong Kong transshipment networks to components recovered from Iranian Shahed drones used in attacks in Ukraine and the Middle East.
“Taken together, these forensic findings establish that the connection between Hong Kong-based trading companies and Iranian weapons systems runs deep,” the report states.
The authors also accused Chinese telecom giant Huawei of using its Hong Kong-registered subsidiary Skycom Tech to help supply Iran with surveillance technology later used to “monitor, identify and detain protesters,” citing allegations previously made by the US Department of Justice.
The report also points to HSBC’s long history of alleged Iran sanctions violations.
It notes that the London-based bank — whose largest operations are in Hong Kong — entered a deferred prosecution agreement with the DOJ in 2012 and agreed to pay roughly $1.9 billion in penalties tied in part to Iran sanctions evasion.
According to the report, HSBC admitted facilitating the transfer of 32,000 ounces of gold bullion “for the ultimate benefit of a bank owned or controlled by the Government of Iran.”
“HSBC operates a robust program to prevent the bank being used to facilitate financial crime,” a rep for the bank told The Post in a statement.
“We are committed to complying with the laws and regulations in the jurisdictions where we operate.”
Hong Kong authorities pushed back on the allegations.
“The HKSAR Government has been enforcing the sanctions imposed by the United Nations Security Council fully and vigorously to fulfil our international obligations,” a government spokesperson told The Post.
The spokesperson added that Hong Kong does “not implement unilateral sanctions imposed by other countries” and said authorities maintain “an effective and robust mechanism” to inspect suspicious companies and vessels tied to sanctions evasion.
Still, the report blasts Hong Kong authorities for openly refusing to cooperate with Western sanctions enforcement.
“The case for more effective action is overwhelming,” the report concludes.
“What is required is not new legal authority. It is the political will to use authority that already exists.”
The Post has sought comment from Huawei. Reps for Petronix and Skycom Tech could not be reached for comment.
