UANI urges action as dark fleet STS transfers off Malaysia surge, fuelling a $45.7 bn Iran–China oil trade.
United Against a Nuclear Iran (UANI) has called for urgent action against the growing number of ship-to-ship (STS) transfers of sanctioned Iranian crude taking place off Malaysia, as the country’s Foreign Minister Mohamad Hasan arrives in Washington, D.C. for ministerial meetings aimed at advancing Malaysia–US bilateral cooperation.
According to UANI, Malaysia’s Exclusive Economic Zone (EEZ) has emerged as a major hotspot for illicit crude transfers linked to the Iran–China oil trade valued at USD 47.7 billion. Despite Minister Hasan supporting a clampdown on such transfers in mid-2025, UANI says enforcement has been limited and STS activity has continued to rise.
Recent monitoring cited by UANI identified around 60 “dark fleet” tankers linked to Iranian oil shipments stationed in the East Outer Port Limits (EOPL) off Malaysia, awaiting STS operations. The number of STS transfer pairs observed in the area has doubled to around 13–15, compared with 5–7 pairs a year earlier.
UANI estimates that STS transfers are central to a trade that moved USD 45.7 billion worth of sanctioned Iranian oil to Chinese buyers in 2025, providing a critical financial lifeline to Tehran.
UANI Chairman Governor Jeb Bush and CEO Ambassador Mark D. Wallace warned that “ghost fleet tankers carrying Iranian oil are operating with impunity just offshore Malaysia,” adding that these illicit sales fund Iran’s nuclear, missile and drone programmes, as well as domestic repression.
While Malaysia maintains diplomatic and economic ties with Iran, making strict enforcement of US sanctions unlikely, UANI noted that many vessels involved operate under false flags with concealed ownership, in violation of international maritime laws. Under MARPOL, tankers above 150 gross tonnes conducting STS operations must have approved plans and Port State Control authorisation, yet enforcement has been minimal.
UANI pointed to the arrest of the EU-sanctioned tanker Rcelebra (IMO 9286073) off Penang after an STS transfer with the OFAC-sanctioned tanker Nora (IMO 9237539) as a rare exception, adding that the action was later reversed. The group described it as symbolic unless followed by comprehensive enforcement targeting the EOPL hotspot.
“As discussions continue in Washington, Malaysia must demonstrate that it will not enable Iran’s sanctions-evasion network through continued tolerance of the ghost fleet’s operations,” Bush and Wallace said.
Source: Seatrade maritime
