A CBS News investigation reveals ship-to-ship transfers off Malaysia's coast used to hide Iranian oil bound for China. The secret trade has helped Iran generate billions despite U.S. sanctions and efforts to curb its nuclear ambitions.

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A recent investigation has uncovered ongoing transfers of sanctioned Iranian oil to China, despite multiple rounds of US sanctions. Tankers known as the 'Dark Fleet' operate in international waters off the coast of Malaysia, where they transfer crude oil from sanctioned vessels to ships bound for China. These tankers often switch off their transponders and obscure identifying information to avoid detection.

Experts monitoring the situation report that China purchases the majority of Iran's oil, with this trade generating significant revenue for Iran. The investigation recorded multiple ship-to-ship transfers in a single day, suggesting that efforts to curb this activity have had limited impact. The continued trade is believed to support Iran's regime and its nuclear program.

How China is still buying sanctioned Iranian oil

Under clear skies at the break of dawn, we set off from Singapore, one of the busiest shipping ports in the world. We're heading to international waters, more than 80 nautical miles away in search of the Dark Fleet, an armada of tankers carrying oil sanctioned by the US. As long as there's a supply, there will be a demand for this discounted oil. The supply is Iran, the demand is China. And this mutually beneficial relationship, which has long angered the United States, plays out off the coast of Malaysia, in the Real Archipelago, an area the size of New York City. Where we are right now, this is Dark Fleet parking central. Charlie Brown, ex-US Navy officer, now senior advisor with United Against a Nuclear Iran, advising the US government, has been monitoring the Dark Fleet for years. He spots one, called Tiffany, as soon as we enter the area. It's a well-known Dark Fleet tanker that's always been out here on a regular basis. The tankers, full of oil, sail from the Persian Gulf through the Straits of Malacca to the Real Archipelago. Here they transfer the crude to ships bound for China, which buys 90% of Iran's oil. On the horizon, we spot what we've come to find. That's one, right here. Straight ahead? Yeah, straight ahead. That one is too. In fact, there are four ship-to-ship transfers happening just in our line of sight. As we approach, these Dark Fleet tankers, all with their transponders switched off, clearly do not want to be identified. Both ships have a net or something, a tarp, deployed over the stern, covering the name and identification number. It's obvious deceptive practice. Further analysis reveals the ship on the left is the elusive Stella Oracle, laden with Iranian oil. It was placed on the US sanctions list back in May. Close by, another ship-to-ship transfer is underway. Alps, not its real name, filled with Iranian crude, was also sanctioned in May. But it's the receiving vessel Eon, not on any list that is caught in the act. We later discover we have found a new sanctions violator. According to a US Congress report last year, this trade generated as much as $70 billion for Iran, propping up the regime and its nuclear weapons program. This is exactly what Scott Besant has been talking about, China buying sanctioned Iranian oil. We are witnessing it in real time. Now the Trump administration has imposed multiple rounds of sanctions on this trade this year. But as you can see from all the activity, it's having little effect. By the end of the day, 12 ship-to-ship transfers were recorded in the Real Archipelago, an unprecedented number. A clear indication Iran and China are only ramping up this illicit activity.

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How China is still buying sanctioned Iranian oil

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