IRAN has relied on Malaysian service providers to escape international sanctions, according to a U.S. Treasury senior official.
The Islamic Republic sells its oil shipments in the region through waters near Singapore and Malaysia.
The U.S. Treasury official, who spoke on the condition of anonymity, also accused Iran of using charities and its oil revenues in East Asia to finance its armed proxies, such as the Palestinian militant group Hamas and Yemen’s Houthis.
Negotiations are underway to stop Malaysia from becoming a jurisdiction where Palestinian militant group Hamas could raise funds to sustain its activities, particularly against Israel, a close ally of Washington.
The U.S. agency said it will collaborate with maritime operators and banking executives in Singapore and Malaysia to stop the sale of Iranian oil in the region.
Meanwhile, Malaysia government spokesperson Fahmi Fadzil said the country is ready to hold talks with US counterparts to address the issue and comply with United Nations sanctions.
