‘Business as usual’ for Iranian shadow fleet passing through South-east Asia, say analysts

Malaysia has been identified as a hub for illegal ship to ship transfers of crude oil in recent years. Read more at straitstimes.com.

KUALA LUMPUR – Even as war in the Middle East places significant strain on global oil supplies, it is business as usual for Iran’s shadow fleet, say maritime intelligence analysts.

This network of tankers transports sanctioned oil from Iran through illegal ship-to-ship (STS) transfers, evading detection through opaque ownership, frequent flag changes and disabled tracking systems.

Ms Bridget Diakun, of UK-based Lloyd’s List Intelligence, said the Iranian shadow fleet continues to transport and export Iranian oil through the Strait of Hormuz towards East Asia even after the outbreak of war in Iran.

“There is more evidence to suggest that things are moving in a relatively normal pattern, rather than indicating that ships are stopping or significantly changing their behaviour,” she told The Straits Times on March 17.

Malaysia has in recent years been identified as a hub for illegal STS transfers. According to United Against Nuclear Iran (UANI), instances of such activity involving sanctioned Iranian oil in Malaysian waters rose from 280 in 2023 to 679 in 2025, driven largely by demand from China.

Since the 1979 Iranian Revolution, the US – and later the United Nations and European Union – has sanctioned Iran over terrorism support and nuclear activities. The sanctions were eased in 2015 but reinstated by US President Donald Trump in 2018.