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US delegation in Malaysia to discuss sanction-evading Iranian oil shipped by ‘dark fleet’
- Malaysia has been accused by the West of helping Tehran evade sanctions through the supply of Iranian oil to China via a ‘dark fleet’ in its waters
- The US officials will emphasise the importance of a ‘unified global response to critical threats’ to ensure sanctions against Iran are enforced
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The transhipment of Iranian oil to bypass American sanctions is expected to be high on the agenda when a Treasury delegation from Washington meets Malaysian officials later this week, with the US Ambassador on Monday predicting “candid and frank” talks.
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Malaysia has long been accused by the West of helping Iran evade economic sanctions by harbouring vessels belonging to a “dark fleet” of ships in its waters. The fleet offloads Iranian oil, which is then shipped for sale to China as Malaysian oil, sidestepping sanctions imposed by Washington on Tehran.
The US is desperate to choke off funding streams for Iran and its proxies as the Israel-Gaza war threatens to spill over into a regional conflict.
Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian Nelson and Treasury General Counsel Neil MacBride will be in Kuala Lumpur this week where they will hold “candid and frank discussions” with Malaysian officials, US Ambassador to Malaysia Edgard Kagan said.
The US delegation will emphasise the importance of “a unified global response to critical threats” in their meetings with Malaysian and later, Singaporean governments, Kagan said.
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“We are confident the Malaysian government understands the US position with regards to transhipment of oil that has been sanctioned… and understands the potential impact that could have,” Kagan told reporters on the sidelines of the Defence Services Asia 2024 expo in Kuala Lumpur.
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