Commodity Settlement Iran -- Gold DVP -- Abu Dhabi

Commodity Traders Working Around Iran's Banking Exclusion

Iran's key exports — crude oil, petrochemicals, and pistachios — face 45-90 day payment delays through comprehensive OFAC/EU sanctions on banking sector. LCORE's gold DVP eliminates the multi-hop SWIFT chain entirely: buyer deposits gold in Abu Dhabi escrow, commodity ships, delivery is confirmed, and gold releases to the exporter. Settlement completes in 2-3 business days with a minimum transaction size of $5M. No USD intermediary bank required.

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2-3
Working Days
0
USD / SWIFT
IRR
Settlement
ADGM
Reg. 28158
Overview

Settling Iran commodity
transactions via gold

When IRR payments are blocked by correspondent banking compliance, LCORE's gold DVP provides a neutral Abu Dhabi alternative. Iranian oil exporters can deposit physical gold into DVP escrow -- commodity delivers -- payment in IRR confirms -- gold releases. 2-3 working days.

ADGM English Law governs. Lloyd's $200M insurance throughout. UAE geopolitically neutral -- not subject to US, EU, or UK sanctions regime.

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Confidential. Min $5M. ADGM 28158.

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FAQ

Frequently asked questions

Why do Iran exporters face settlement delays with international buyers?
Iran's banking sector routes USD payments through multiple correspondent banks, each adding compliance review and processing time. Total settlement typically takes 45-90 days. LCORE's gold DVP compresses this to 2-3 business days through single-point Abu Dhabi escrow, eliminating the entire correspondent chain.
What Iran commodities can be settled through gold DVP?
Primary exports including crude oil, petrochemicals, and pistachios all qualify for gold DVP settlement. Any physical commodity with verifiable shipment documentation — bill of lading, quality certificate, and quantity survey — can trigger the settlement mechanism. Minimum $5M per transaction.
How does gold DVP protect Iran exporters from currency risk during settlement?
Traditional SWIFT settlement exposes Iran exporters to 45-90 days of exchange rate movement. Gold DVP locks value at transaction date: gold collateral is denominated in USD equivalent, settlement occurs in 2-3 business days, and the exporter receives payment before currency drift becomes material.
Also see: DVP Settlement · Non-USD Commodity · Gold Escrow
Key Commodities

Iran commodity trade profile

Iran holds the world's second-largest natural gas reserves and fourth-largest crude oil reserves, making hydrocarbons the foundation of its commodity export base. Crude oil production — constrained by sanctions to approximately 3-3.5 million barrels per day — ships primarily to China through opaque intermediary trading structures. Petrochemical products from the South Pars petrochemical complex (Assaluyeh) represent Iran's fastest-growing commodity export, with Chinese, Indian, and South Asian buyers purchasing methanol, urea, polyethylene, and PVC. Saffron from Khorasan province accounts for over 90% of global saffron production — a high-value agricultural commodity with EU, UAE, and Asian buyers. Pistachios from Kerman remain a premium global commodity. Iron ore from the central plateau, steel from Mobarakeh and Khuzestan mills, and copper concentrate from Sarcheshmeh mine add industrial commodity exports.

Banking Friction

Why Iran commodity traders need payment alternatives

Iran is subject to the most comprehensive US sanctions regime of any country — OFAC's Iranian Transactions and Sanctions Regulations (ITSR) prohibit virtually all USD transactions with Iranian counterparties. Iran was disconnected from SWIFT in 2012 and again in 2018 after JCPOA withdrawal. The rial (IRR) has experienced hyperinflationary collapse — losing 99%+ of its value since 2012. All Iranian commodity trade occurs outside the USD system through alternative mechanisms: Chinese yuan, barter, cryptocurrency, hawala, and physical gold. LCORE conducts rigorous OFAC, EU, UN, and UAE sanctions screening on all mandates. Transactions involving Iranian SDNs or the Government of Iran are not eligible. Private Iranian commodity counterparties in non-sanctioned sectors (saffron, pistachios, non-IRGC-affiliated copper) with non-US buyers may qualify under specific licensing or jurisdictional analysis. All Iran-origin mandates require specific ADGM compliance review.