👀 Ones to watch: Undervalued stocks to buy before they report Q3 earningsSee Undervalued Stocks

Iran's capacity to move oil reliant on Malaysian providers, US official says

Published 05/07/2024, 02:51 AM
Updated 05/07/2024, 05:27 AM
© Reuters. FILE PHOTO: Iranian flag with stock graph and an oil pump jack miniature model are seen in this illustration taken October 9, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

By Xinghui Kok

SINGAPORE (Reuters) -The United States sees Iran's capacity to move its oil as reliant on service providers based in Malaysia, with oil being transferred near Singapore and throughout the region, a senior U.S. Treasury official said on Tuesday.

The U.S. Treasury is increasing its focus on financing for militant groups routed through Southeast Asia, including through fundraising efforts and illicit sales of Iranian oil.

The official told reporters in a background briefing that the United States was trying to prevent Malaysia from becoming a jurisdiction where the Palestinian militant group Hamas could both fundraise and then move money.

"We are concerned about Hamas' capacity to fundraise in the region, including in Malaysia, so want to have a direct conversation about those concerns," the official said.

The official said there was a "concerning uptick" in attempts by Iran and its proxies to raise funds in the region, sometimes through charities.

"It's appalling that they seek to take advantage of the outpouring of support for the Palestinian people to siphon money for their violent and destabilizing activities," said the official, while declining to name the suspect charities.

Brian Nelson, the Under Secretary of the Treasury for Terrorism and Financial Intelligence and Neil MacBride, Treasury General Counsel, are in Singapore and Malaysia from Monday until Thursday.

The department said the visit was to advance its work in countering financing and revenue generation by Iran and its proxies.

The official said the United States saw Iranian oil being transferred near Singapore and throughout the region.

"The capacity of Iran to move its oil has relied on sort of these types of service providers that are based in Malaysia. So we want to have direct conversation with Malaysians about that."

Last December, the U.S. Treasury imposed sanctions on four Malaysia-based companies it accused of being fronts supporting Iran's production of drones.

© Reuters. FILE PHOTO: Iranian flag with stock graph and an oil pump jack miniature model are seen in this illustration taken October 9, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

The official also said sanctions and export controls against Russia were seeing progress, adding the Russian oil price cap was reducing Moscow's capacity to profit from oil sales while preserving the stability of global energy markets.

Singapore is a major shipping hub. Insurance and other maritime service providers operating in Singapore have warned of evasion of the price cap on Russian oil, complaining that it is difficult to confirm whether paperwork promising oil is bought at or below the $60 cap is accurate.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.