Malaysian authorities flag increased Iranian oil transfers evading U.S. sanctions, with China absorbing over 90% of Iran’s exports.
Iran’s shadow fleet is conducting more ship-to-ship oil transfers near Malaysian waters, bypassing U.S. sanctions enforcement. The transfers exploit jurisdictional gaps, allowing Iran to continue exporting oil despite a U.S. blockade outside the Strait of Hormuz.
China remains the primary destination, accounting for over 90% of Iranian oil exports since the sanctions were imposed. The surge in transfers highlights Iran’s efforts to sustain oil shipments amid restricted access to global markets.
The Malaysian Maritime Enforcement Agency noted the trend but did not specify enforcement actions. The U.S. has targeted Iranian oil exports to pressure Tehran, but the shadow fleet’s tactics complicate these efforts.