Sanctioned Floating Gas Platform Helped Iran Move Oil Under Radar
Sanctioned “floating gas station” helped Iran bypass oil sanctions.
A covert maritime network centered around a so-called “floating gas station” has played a critical role in helping Iran move oil despite heavy international sanctions, according to recent investigative reports and shipping data.
At the heart of this system is a remote anchorage zone off the coast of Malaysia, where sanctioned oil tankers routinely gather, loiter, and transfer cargo. Ships such as the MT Tifani would sail from Iran, often from export hubs like Kharg Island, and anchor in this area before conducting further operations.
The mechanism relies heavily on ship-to-ship (STS) transfers, a legitimate maritime practice that is repurposed here to obscure the oil’s origin. In these operations, Iranian crude is transferred from one tanker to another—often under cover of darkness—allowing the receiving vessel to carry the cargo onward with a different declared origin. This effectively “launders” the oil, making it harder for authorities to track or sanction.
To avoid detection, vessels in this shadow network frequently switch off or manipulate their Automatic Identification System (AIS), creating gaps in their tracking data. Some ships also change names, flags, or documentation mid-journey, further complicating enforcement efforts. These tactics are part of a broader “shadow fleet” strategy used by Iran to bypass restrictions.
Once the oil is transferred, it is typically transported by a second set of ships—often not yet sanctioned—to buyers in Asia, particularly China, which accounts for a significant share of Iran’s crude exports. The oil is sometimes rebranded as originating from other countries, such as Malaysia, before entering the market.
This floating hub has effectively functioned as a mid-sea storage and distribution center, allowing Iran to sustain exports even during heightened sanctions and military pressure. Analysts note that hundreds of such transfers have taken place in recent months, generating substantial revenue for Tehran despite restrictions on its energy sector.
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