U.S. launches “zero-leakage” push as millions of barrels sit off Malaysia

Nearly 40 million barrels of Iranian crude, equivalent to about 20 VLCCs, are stranded on tankers near Malaysia, outside the maritime blockade that U.S. warships maintain at the Persian Gulf entrance. Treasury Secretary Scott Bessent unveiled Operation Economic Outcast, pledging a “zero-leakage” approach to strip Tehran of any remaining oil-derived revenue. While fresh exports have fallen sharply, the floating stockpile could still be sold through ship-to-ship transfers and settled in Chinese yuan, allowing Iran to fund imports and possibly rebuild its military.

The administration has already penalized a Hong Kong-flagged tanker that transferred oil off Malaysia and continues to sanction Chinese and Hong Kong trading houses, though it has not yet designated a Chinese bank. Experts suggest expanding pressure on shadow-fleet vessels operating in Asian waters to prevent the oil from reaching Chinese buyers. A War Department official confirmed that U.S. forces will maintain global maritime enforcement to disrupt sanctioned vessels wherever they appear. The success of this “zero-leakage” effort will test Washington’s ability to fully isolate Iran’s oil earnings.