In the waters off Malaysia, Iranian oil sales continue despite blockade

What the report says

Al Jazeera reported that a major anchorage off Malaysia’s coast continues to function as a hub for sanctioned oil trading, including Iranian crude, despite a recent US naval blockade of Iranian ports during the US-Israel war on Iran. The report focuses on Malaysia’s Eastern Outer Port Limits, or EOPL, a large area in the South China Sea about 70km from shore, where the Iranian tanker Humanity reportedly switched off its AIS tracking signal after transiting the Straits of Malacca and Singapore in late July 2026.

Maritime analysts cited by Al Jazeera said the tanker likely went dark ahead of a ship-to-ship transfer, a practice used to obscure a cargo’s origin. Experts told the outlet that oil moved through the EOPL often ultimately goes to China, particularly smaller independent refineries that face less exposure to the US financial system than major state-owned firms. Ray Powell of Stanford-affiliated SeaLight said his project had tracked 62 vessels this year using false or decommissioned identities while moving between the Gulf, the EOPL, Hong Kong and northern China.

The report said satellite data reviewed by Al Jazeera showed 18 Iranian-flagged oil tankers arrived at the EOPL over the past month before going dark. At least 50 US- or EU-sanctioned vessels were also broadcasting AIS signals in the area on Thursday, with experts saying additional dark ships were likely present.

Al Jazeera noted that Malaysia amended its EEZ law in June to address unauthorised anchoring, bunkering and ship-to-ship transfers, but its foreign ministry did not comment. The story underscores how sanctions enforcement at sea remains difficult, especially in busy international shipping corridors with complex jurisdictional boundaries.