Iran Uses 42 Covert Oil Transfers Near Malaysia to Evade US Sanctions
Updated
Updated · Gulf News · May 13
Iran Uses 42 Covert Oil Transfers Near Malaysia to Evade US Sanctions
9 articles · Updated · Gulf News · May 13
Satellite imagery reviewed by UANI tracked at least 42 ship-to-ship transfers of Iranian oil near Malaysia’s Johor waters since the Feb. 28 US-Iran conflict began, indicating exports are still moving despite tighter US pressure.
The network relies on a “dark fleet” of aging tankers that switch off transponders, change names and flags, falsify documents, and sometimes blend crude to obscure Iranian origin before cargoes head mainly to China.
Malaysia says many transfers occur in international waters beyond its jurisdiction, but AP reported at least two dozen Iranian-linked tankers recently anchored or loitering near the transfer zone, with some previously detained vessels returning to operate again.
China buys about 90% of Iranian crude exports, making the South China Sea corridor between Iran and China a crucial sanctions-evasion route even after Washington imposed a mid-April blockade on Iranian ports.
The activity is raising spill and collision concerns along one of the world’s busiest shipping lanes and, alongside Iran’s pressure tactics in the Strait of Hormuz, highlights Tehran’s broader maritime strategy to preserve oil revenue.
How can global banks counter Iran's use of cryptocurrency to launder its illicit oil revenue?
As Russia escorts shadow tankers, how can the US enforce its blockade without risking direct military conflict?
Can nations legally seize aging 'dark fleet' tankers in international waters before an inevitable environmental disaster?
Blockade vs. Evasion: Iran’s Covert Oil Exports and the Global Impact of the 2026 U.S. Naval Crackdown
Overview
In mid-April 2026, the U.S. imposed a naval blockade on Iran’s oil exports, forcing Iran to store much of its produced oil and threatening a sharp drop in crude production. In response, Iran quickly adapted by relying on sophisticated covert operations, including the use of a 'Dark Fleet' and complex evasion tactics. These methods, such as covert ship-to-ship transfers in international waters, allowed Iran to sustain vital oil trade—mainly with China—despite the blockade. This ongoing cat-and-mouse game highlights Iran’s resilience and the challenges faced by international enforcement efforts.