Gibraltar releases Iranian tanker that U.S. sought to seize

Iran tanker controversy: Why the Strait of Hormuz is so important

Gibraltar on Thursday allowed a detained Iranian supertanker to leave the British overseas territory despite a last-minute U.S. attempt to seize the vessel, potentially defusing tensions between London and Tehran as a British-flagged tanker remains held by the Islamic Republic.

WATCH: U.S. applies to seize Iran oil tanker held in Gibraltar

Click to play video: 'U.S. applies to seize Iran oil tanker held in Gibraltar' U.S. applies to seize Iran oil tanker held in Gibraltar
U.S. applies to seize Iran oil tanker held in Gibraltar – Aug 15, 2019

The release of the Grace 1 comes amid a growing confrontation between Iran and the West after U.S. President Donald Trump pulled Washington out of Tehran’s nuclear deal with world powers over a year ago.

Story continues below advertisement

In past weeks, the Persian Gulf region has seen six attacks on oil tankers that the U.S. has blamed on Iran and the downing of a U.S. surveillance drone by Iranian forces. Iran denied it was behind the tanker attacks, although it has seized other tankers.

Gibraltar Chief Minister Fabian Picardo said the U.S. was still on time to request a new legal procedure for seizing the Grace 1, but that provisions under the European Union’s sanctions regulations were ending Thursday after the Iranian government assured him in writing that the ship will not send its 2.1 million barrels of crude to a sanctioned entity in Syria.

READ MORE: Persian Gulf tanker incidents could cut traffic, raise shippers’ costs: experts

Reacting to the developments, Iran’s Foreign Minister Mohammad Javad Zarif accused the U.S. of trying to “steal our property on the high seas.”

“Having failed to accomplish its objectives through its #EconomicTerrorism — including depriving cancer patients of medicine — the US attempted to abuse the legal system to steal our property on the high seas,” Zarif tweeted, calling the Trump administration’s moves a “piracy attempt.”

It was not clear whether the Grace 1 would sail away immediately; nor was it known what the Trump’s administration strategy was. The U.S. Justice Department did not respond to requests for comment.

Story continues below advertisement

“This is an important material change in the destination of the vessel and the beneficiary of its cargo,” Gibraltar’s Picardo said in a statement, adding that the move ensured that the Syrian government of President Bashar Assad would be deprived of more than $140 million of crude oil.

WATCH: Oil tanker bound for Syria seized in Gibraltar for sanctions-busting

Click to play video: 'Oil tanker bound for Syria seized in Gibraltar for sanctions-busting' Oil tanker bound for Syria seized in Gibraltar for sanctions-busting
Oil tanker bound for Syria seized in Gibraltar for sanctions-busting – Jul 5, 2019

Gibraltar said it had “solid documentary evidence” that the vessel was bound for Syria when it was detained on July 4, but that the political fallout had prompted talks with Iranian officials in London.

Picardo’s office released copies of communications with the Syrian Embassy in the U.K. shortly after the British overseas territory’s Supreme Court decision to release the tanker.

The court had delayed its decision after the Justice Department made a last-minute application to extend the detention of the oil tanker, the Gibraltar government had said earlier Thursday. But there was no U.S. application to the court when the hearing resumed in the afternoon, the Gibraltar Chronicle newspaper reported, quoting the court’s chief justice, Anthony Dudley.

Story continues below advertisement

Picardo said that any U.S. request to detain the Grace 1 would now to be examined under bilateral agreements and outside of the EU sanction mechanism.

READ MORE: New video shows Iran warning U.K. warship to ‘not interfere’

The EU has endorsed U.N. sanctions against Syria and has imposed a broad range of its own restrictions against Assad’s government and its supporters. The restrictions include an oil embargo, limits on certain type of investments and a freeze of Syria’s central bank’s assets in the EU, among others.

In May, it extended until mid-2020 travel bans and the freezing of assets of 269 individuals and 69 entities. Among them is listed the Banyas refinery where the Grace 1′s cargo was allegedly headed on July 4 when it was seized in a British Royal Navy operation in the Strait of Gibraltar.

Shortly after that, Iran seized the British-flagged oil tanker Stena Impero, which remains held by the Islamic Republic. Analysts had said the release of the Grace 1 by Gibraltar could see the Stena Impero go free.

WATCH: Dramatic audio reveals how U.K. tried to stop ship seizure

Click to play video: 'Dramatic audio reveals how U.K. tried to stop ship seizure' Dramatic audio reveals how U.K. tried to stop ship seizure
Dramatic audio reveals how U.K. tried to stop ship seizure – Jul 21, 2019

On Thursday, Britain’s Foreign Office said in a statement that the “investigations conducted around the Grace 1 are a matter for the government of Gibraltar,” and that it couldn’t comment further.

Story continues below advertisement

Prime Minister Boris Johnson’s Downing Street office said Iran was discussed during his meeting with Trump’s national security adviser John Bolton earlier in the week, though no details were released.

Signaling preparations for the expected release of the ship, the captain, an Indian national, and three officers of the Grace 1 were released from detention, the Gibraltar government said.

The whereabouts of the crew, none of whom are Iranian, were not immediately known. The crew of the Grace 1 includes sailors from India, Pakistan and Ukraine, according to Iranian state television.

READ MORE: Iraq’s oil ministry says it has no connection to oil tanker seized by Iran

Beyond a few Gibraltar-flagged patrol boats, an Associated Press crew saw little security around the tanker Thursday. A handful of men could be seen on the deck, some looking through binoculars.

This is the second time the Trump administration has moved to seize a ship in recent months. In May, the Justice Department said it had seized a North Korean cargo ship used to supply coal to the isolated nation in violation of international sanctions.

Tensions have escalated in the Persian Gulf region since Trump unilaterally withdrew the 2015 nuclear deal signed by Iran, Britain, France, Germany, Russia and China. The decision stopped billions of dollars in business deals, largely halted the sale of Iran’s crude oil internationally and sharply depreciated Iran’s currency, the rial.

Story continues below advertisement

In recent weeks, Iran has begun to step away from the deal by increasing its production and enrichment of uranium. It has threatened to take further steps in early September if Europe can’t help it sell its oil abroad.

WATCH: Iraq government claims tanker seized by Iran not theirs

Click to play video: 'Iraq government claims tanker seized by Iran not theirs' Iraq government claims tanker seized by Iran not theirs
Iraq government claims tanker seized by Iran not theirs – Aug 4, 2019


Lina Khatib, head of the Middle East and North Africa program at Chatham House, said the U.S. request on the Grace 1 was based on its own imposed sanctions on Iran, and not the EU’s sanctions on oil exports to Syria.

“Although the U.S. expects its European allies to abide by these sanctions, it is up to the Gibraltar authorities to assess the allegations presented by the U.S.,” Khatib said.

Story continues below advertisement

Resolving the tanker dispute would help Britain’s Johnson focus on domestic issues as he works to complete Britain’s exit from the EU and prepare for anticipated national elections in the next few months.

The U.S. has been asking its allies to take part in a naval mission to protect shipping in the strategic Strait of Hormuz, at the mouth of the Persian Gulf, although European nations have been reluctant.

Britain has so far been the only nation to express willingness to join a maritime security mission. It has also been giving U.K.-flagged vessels a naval escort since the Iranian Revolutionary Guard’s seizure of the Stena Impero.




Sponsored content