Kuala Lumpur — Malaysia's maritime agency said on May 11 that tankers linked to Iran are exploiting a 'legal loophole' to conduct sanctioned oil transfers near Malaysian waters. The statement came after allegations that Iran's oil transfer tactics have been ongoing for years without interference.
The agency rejected claims that Malaysian authorities have turned a blind eye to the long-running oil trade that helps Iran bypass U.S. sanctions. According to the agency, the oil transfers occur in international waters beyond Malaysia's direct jurisdiction, creating a 'legal vacuum' that Iran-linked tankers can exploit.
Experts say ship-to-ship oil transfers are a common tactic to avoid detection and tracking, allowing Iran to maintain oil flows despite international sanctions. Malaysia is working to enhance surveillance and cooperate with international partners to address the situation.
