U.S. Demands Iran Release Foreign Ship, Crew Seized This Week

U.S. Demands Iran Release Foreign Ship, Crew Seized This Week
Nick Wadhams and Arsalan Shahla July 18, 2019 https://www.bloomberg.com/news/articles/2019-07-18/iran-forces-seize-for...

The U.S. condemned Iranian naval activity in the Persian Gulf and demanded the Islamic Republic release a small tanker and its crew that its forces seized earlier this week as tensions in the Persian Gulf remain high.

Iran said it seized the ship -- the Panamanian-flagged Riah -- because it was smuggling fuel in the Persian Gulf. Patrolling forces stopped the carrier on July 14 south of Larak island, close to the Strait of Hormuz, the shipping chokepoint at the mouth of the Gulf, according to state-run Tasnim news agency.

The U.S. called on Tehran to free the ship and its crew immediately, and condemned what it called Islamic Revolutionary Guard Corps “continued harassment” of vessels in and around the Strait of Hormuz, according to a State Department official who asked not to be identified discussing the issue.

With U.S.-Iran tensions intensifying over recent attacks on cargo ships, the downing of an American drone and the British seizure of a tanker carrying Iranian oil, Donald Trump told reporters in Washington that he’s in “no rush” to negotiate with the Islamic Republic. Trump added that he believes his administration’s “maximum pressure” campaign against Iran is succeeding.

“Iran is a much different country right now,” Trump said. “They’re being hurt very badly by sanctions.”

The Riah, which is based in the United Arab Emirates, was smuggling 1 million liters of fuel out of Iran, intending to load the cargo on to foreign vessels, the state-run Iranian Students News Agency reported, citing a statement from the IRGC.

The seizure follows threats Iran has made in the past few weeks after British Royal Marines helped authorities in Gibraltar impound a supertanker as it carried Iranian crude in the Mediterranean Sea seemingly bound for Syria. About one-third of the world’s seaborne oil passed through the Strait of Hormuz last year, highlighting its key role in global oil markets.

Iran has been blamed for attacks on merchant shipping in recent months but has denied responsibility.
Oil Prices

Oil slid to the lowest in almost a month as pessimism about a trade truce between the U.S. and China continued to dog markets, while the resumption of Russian pipeline flows fed worries about a supply glut.

The Riah had 12 foreigners on board and a 2 million-liter capacity, ISNA reported. That makes it one of the smaller ships plying petroleum around the Gulf, where tankers carrying 2 million barrels of oil -- with 159 liters in each barrel -- are common.

Iran’s state National Iranian Tanker Co. didn’t immediately reply to a request for comment.

— With assistance by Anthony Dipaola, Verity Ratcliffe, Ladane Nasseri, and Jennifer Jacobs