February 2025 Iran Tanker Tracker

Iranian Navy’s Visit to Malaysia Amid Renewed U.S. Pressure on Tehran 

Two Iranian Navy vessels, IRIS Dena and IRIS Shahid Mahdavi, arrived at Port Klang, Malaysia, last weekend, marking Tehran’s ongoing efforts to project maritime power beyond the Middle East. This second major deployment to Southeast Asia, following a similar mission in 2022-23, coincides with the Trump administration’s Maximum Pressure campaign—aimed at cutting off Iran’s revenue streams used to fund its nuclear program, military, and regional proxies.

At the same time, Iran continues to circumvent sanctions through its Dark Fleet—a network of tankers engaged in deceptive shipping practices, including AIS manipulation, falsified documentation, and opaque ownership structures. These tactics enable Iran to maintain crude exports, primarily to China, sustaining its economy despite increasing U.S. sanctions. Tehran’s naval presence in Malaysia is a calculated move—leveraging diplomatic engagement to sustain illicit oil flows while signaling defiance of U.S. sanctions.

The arrival of Iranian naval assets in Malaysia serves two key purposes:

• Symbolically, it is a display of defiance, a clear message that Tehran remains undeterred by U.S. sanctions and diplomatic isolation.
• Strategically, the visit allows Iran to deepen ties with Malaysian authorities, potentially securing more favorable conditions for its illicit oil trade.

Despite U.S. efforts to ramp up sanctions enforcement, Iran’s crude exports remain largely unaffected, with China acting as the regime’s economic lifeline. February data confirms that China accounted for the vast majority of Iranian shipments, reinforcing its pivotal role in keeping Tehran’s economy afloat.

*figures to be updated over the following weeks

Iran relies heavily on ship-to-ship (STS) transfers in international waters, particularly in the South China Sea. The waters off Eastern Johor, Malaysia, have become a key hub for these illicit transactions, where Iranian crude is regularly transferred to obscurely owned tankers before continuing on to China and other markets.

Iran’s increasing naval presence in Malaysia is not just about power projection—it’s about maintaining access to critical maritime networks that sustain its economy. A recent satellite image from February 15, 2025, captured at least seven STS transfers off Malaysia, underscoring the scale of Iran’s clandestine oil trading operations.

The Ghost Fleet’s unregulated STS operations occur outside established compliance frameworks, particularly those mandated by the International Convention for the Prevention of Pollution from Ships (MARPOL). Unlike legitimate maritime transactions, these shadow operations:

• Provide no advance notification to coastal states.
• Lack of contingency plans for oil spills or accidents.
• Operate without valid insurance, shifting environmental and financial risks onto regional nations rather than the rogue operators facilitating Iran’s evasion efforts.

Iran’s deepening ties with Malaysia underscore the broader challenge of sanctions enforcement in a region where economic pragmatism often outweighs geopolitical considerations. Malaysia’s response to Iran’s illicit activities will likely be tempered by its economic dependence on China—a major buyer of Iranian crude and a key trading partner.

This China-Malaysia dynamic complicates U.S. efforts to pressure Kuala Lumpur into stricter enforcement of sanctions. The looming threat of secondary sanctions or trade penalties by Washington could force Malaysia into a delicate balancing act between maintaining its economic ties with China and avoiding U.S. punitive measures.

Iran’s naval deployment to Malaysia is far more than a routine port visit—it is a strategic maneuver that highlights Tehran’s resilience in the face of mounting U.S. pressure. As geopolitical tensions escalate, Southeast Asia is emerging as a key battleground in the ongoing struggle between Iran, the U.S., and China. To effectively counter Iran’s expanding influence and maritime evasion tactics, Washington should:

• Enhance intelligence-sharing with regional allies to track and intercept illicit shipments.
• Strengthen enforcement measures on tankers engaging in deceptive shipping practices.
• Consider secondary sanctions on entities facilitating Iran’s oil exports, particularly those operating in Malaysia’s maritime domain.

Without a coordinated and aggressive enforcement strategy, Iran’s growing footprint in Southeast Asia will only continue to erode the effectiveness of U.S. sanctions.