New satellite imagery shows what appears to be Iran’s shadow fleet operating in the South China Sea , transferring oil via ship-to-ship to tankers possibly bound for China .

Newsweek has reached out to the U.S. State Department, the Iranian and Chinese foreign ministries for comment.

Why It Matters

The U.S. is escalating enforcement against Iran’s covert oil trade. Beijing’s refiners have increasingly relied on Russian, Iranian and Venezuelan oil, much of it carried by older or reflagged "shadow" vessels operating outside Western shipping and insurance systems.

What To Know

Satellite imagery captured on Sunday shows at least five oil tankers conducting ship-to-ship transfers in the South China Sea, roughly 70 kilometers off Malaysia ’s eastern coast, near Johor, according

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