In the waters off Malaysia, Iranian oil sales continue despite blockade
Summary
An Iranian oil tanker called Humanity sailed near Malaysia, turned off its tracking system, and likely transferred its oil cargo to another ship at sea. This area is known as a place where Iranian oil is secretly sold despite U.S. sanctions and a naval blockade. Most of this oil is believed to be sent to China.Key Facts
- The tanker Humanity passed through the Straits of Malacca and Singapore and entered Malaysian waters before turning off its automatic identification system (AIS).
- The ship was near the Eastern Outer Port Limits (EOPL) of Malaysia in the South China Sea, an area about 70 km from shore.
- The tanker likely transferred its oil to another ship at sea to hide the oil’s Iranian origin, a practice called ship-to-ship transfer.
- China buys around 90% of Iran’s crude oil exports, often through small, independent refineries known as “teapot” refineries.
- The EOPL has been a busy area for selling sanctioned oil from Iran, Russia, and Venezuela for many years.
- Satellite data shows that such oil trading activities have continued despite an ongoing U.S.-Israel blockade of Iranian ports.
- Malaysia has legal control over the area’s natural resources but faces difficulties policing oil transfer activities there.
- Malaysia recently updated its laws to try to stop unauthorized ship activities in its Exclusive Economic Zone (EEZ).
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