Iranian Ghost Fleet Evades US Blockade to Deliver Sanctioned LPG to China via Malaysian Hub

Bearish (-0.7)Impact: Medium

Published on November 2, 2026 (4 hours ago) · By VibeTrader

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Small Iranian tankers are successfully evading the U.S. naval blockade and smuggling sanctioned liquefied petroleum gas (LPG) to China through a shadowy maritime hub off Malaysia, according to an investigation by United Against Nuclear Iran (UANI) [1]. The organization conducted a months-long probe and covertly filmed one vessel, the SOGL, en route in September, identifying at least nine similar tankers carrying Iranian oil or LPG that have evaded U.S. restrictions in the Strait of Hormuz since Washington reinstated the Iranian port blockade in July [1].

The SOGL tanker case exemplifies the operation: the vessel loaded approximately 500,000 barrels of Iranian LPG from Assaluyeh Port in late August, breached the U.S. blockade on September 1, and traveled thousands of miles to a Malaysian offshore anchorage where UANI filmed it receiving fuel and other services before proceeding to China to discharge its cargo [1]. Jemima Shelley, a senior analyst at UANI, stated: "What this shows us is that some vessels are managing to breach the U.S. maritime blockade. Most vessels aren't, but since the reinstatement in mid-July, we have seen only nine small tankers being successful in their breach of the U.S. blockade and departing the Gulf of Oman laden with oil or LPG" [1].

The Malaysian Eastern Outer Port Limits Anchorage (EOPL), located approximately 70 kilometers from Malaysia's coastline, has become a critical staging ground for Iran's sanctioned energy trade with China [1]. This offshore shipping area allows vessels to wait offshore, receive supplies, and transfer cargo between tankers, providing a logistical lifeline for Iranian energy exports as American naval forces patrol waters closer to Iran [1]. On September 16, UANI chartered a supply vessel and transited 100 nautical miles into the EOPL anchorage, where they witnessed firsthand the illicit activities of ghost fleet tankers and Iran-flagged cargo ships, including the SOGL [1].

CONCLUSION

While the U.S. maritime blockade has proven largely effective in restricting Iranian energy exports, a small but persistent ghost fleet of tankers continues to circumvent sanctions by utilizing Malaysian offshore anchorages as transshipment hubs to deliver Iranian LPG to China [1]. The discovery of this evasion network suggests ongoing vulnerabilities in the enforcement of U.S. sanctions on Iranian oil and gas, with potential implications for energy markets and geopolitical tensions in the region.

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Sources: foxnews.com