Dozens of Iranian oil tankers are adrift off Sri Lanka and Malaysia, stranded as the U.S. threatens secondary sanctions against countries providing assistance. The vessels, mostly empty after transferring sanctioned oil to Chinese buyers, have been caught in a blockade since July when the U.S. reimposed restrictions on the Strait of Hormuz. U.S. officials pressured Sri Lanka to block local ships from provisioning the tankers and their crews, citing risk of secondary sanctions. Before the conflict, ships carried Iranian crude to Malaysian waters for ship-to-ship transfers to vessels bound for Chinese refineries.
Now, Asian ports refuse service due to sanctions fears, leaving tankers drifting with limited supplies. The Elva, a sanctioned tanker that loaded oil from Kharg Island, has lingered off Malaysia since August. Analysts expect Iranian oil payments to cease by year-end, with revenues dropping to zero for Iran by December.
Source: Wall Street Journal US Business · Summarized by HeadlinesBriefing