What happened
Iranian 'ghost fleet' tankers are slipping past a US naval blockade to smuggle sanctioned liquefied petroleum gas (LPG) to China. According to US investigators, at least nine similar tankers carrying Iranian oil or LPG have evaded US restrictions in the Strait of Hormuz since the blockade was reinstated in July.
One of the sanctioned tankers, the SOGL, was filmed by investigators en route to China in September. The vessel allegedly escaped the blockade on September 1, carrying approximately 500,000 barrels of Iranian LPG, and traveled to a Malaysian offshore anchorage, where it received fuel and other services before discharging its cargo in China.
The Malaysian Eastern Outer Port Limits Anchorage has become a critical staging ground for Iran's sanctioned energy trade with China, allowing vessels to wait offshore, receive supplies, and transfer cargo between tankers. The area is approximately 70 kilometers from Malaysia's coastline and has been used by ghost fleet tankers and Iran-flagged cargo ships to evade US sanctions.
The US maritime blockade, reinstated in July, has largely stopped Iran from exporting crude oil, depriving Tehran of a major source of revenue. However, smaller tankers have been able to breach the blockade, exploiting challenges in enforcing the blockade, particularly with volatile cargo such as LPG.
