Malaysia Says Iranian Oil Transfers Near Its Waters Exploit Maritime Loophole
Malaysia’s maritime agency has accused Iranian-linked tankers of exploiting “jurisdictional gaps” to conduct ship-to-ship transfers of sanctioned oil near its waters, rejecting allegations that authorities ignored a long-running trade allowing Iran to evade U.S. sanctions.
The area in question is the Eastern Outer Port Limits (EOPL) in the South China Sea, approximately 70 kilometers off Johor’s coast. This location lies along one of the world’s busiest maritime trade routes and is about halfway between Iran and China, which buys around 90% of Iranian oil.
According to United Against Nuclear Iran (UANI), a U.S.-based advocacy group, there have been 42 ship-to-ship transfers of Iranian oil conducted in the EOPL area since February 28, when the U.S. and Israel attacked Iran, starting a war in the Middle East. UANI used satellite imagery to observe these operations.
Malaysian Maritime Enforcement Agency Director-General Mohamad Rosli Abdullah explained that the transfers often take place outside the country’s territorial waters and in remote areas beyond radar coverage, especially near maritime boundaries or international shipping routes. He emphasized that the selection of such locations is intended to exploit jurisdictional gaps and limit direct enforcement action by local authorities.
UANI Alleges Malaysia Facilitates Illicit Activity
UANI senior adviser Charlie Brown warned Malaysia is becoming “a facilitator rather than merely a transit point” for illicit activity, citing the country’s inaction as enabling this business model. He stated that because of Malaysia’s lack of enforcement, it is facilitating this business model by Iran and China and dark fleet actors.
Malaysian authorities have rejected these allegations, stating that enforcement is conducted strictly under Malaysian law and relevant international conventions. Director-General Abdullah emphasized that authorities have “never compromised nor provided any special treatment or privileges to any country.”
Ship-to-Ship Transfers Persist Despite U.S. Blockade
Clandestine high-seas transfers from Iranian-linked tankers have persisted for years, allowing Tehran to sell its crude while offering buyers plausible deniability about the oil’s source. The U.S. blockade of Iranian ports started in mid-April, but UANI claims it has tracked Iranian-linked tankers still operating.
As of Tuesday, two dozen Iranian-linked tankers tracked by UANI were anchored or loitering near the EOPL area used for transfers off Johor, though it was unclear how many had sailed before the blockade began. “It’s business as usual,” UANI’s Brown told the AP.
Malaysia Discourages Unsanctioned Transfers
Malaysia discourages unsanctioned transfers outside designated areas, where such operations can be supervised, as they greatly increase the likelihood of a spill and involve aging vessels carried out far from ports where mistakes could be more easily contained.
Original Article: Malaysia says Iranian oil transfers near its waters exploit a maritime loophole — Wftv