US lawmakers angered as seized Iranian oil tanker remains untouched
3 Min Read
It is not only a matter of fear of sanctions that is forcing companies to hold back on unloading contents but also a fear of Iranian retaliation.
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Image taken on Oct 26, 2017, depicts seized Iranian oil tanker, Suez Rajan, that is currently being held by the US off Texas (VesselFinder)
Iranian oil tanker Suez Rajan which was seized by the US Navy and docked off of Texas, remains untouched as US lawmakers from both parts of the House, Democrat and Republican, urge US President Joe Biden to resolve the issue of the cargo transfer following months-long stagnation.
US companies are "literally afraid" to unload the tanker's contents, said US Congressmen, referring to published reports highlighting that the tanker has been located off of Texas for approximately 11 months and carries about 800,000 barrels of Iranian oil.
Reuters reported that the tanker was seized in a sanctions enforcement operation, and as such, the US claims that sanctions remained the allegedly primary reason why companies will not touch the tanker. However, it is important to note that the delay proves that US companies and governments are afraid of possible Iranian retaliation if the tanker's content is unloaded.
Last month, a senior Iranian commander in the Islamic Revolution Guard Corps said Iran would retaliate against any oil company unloading Iranian oil from a seized tanker.
Why US oil firms are too afraid to unload seized Iranian oil: WSJ
According to individuals familiar with the situation, US federal prosecutors are unable to sell nearly 800,000 barrels of seized Iranian oil lying aboard a Greek ship off the coast of Texas, a report by The Wall Street Journal revealed earlier in July.
Although the coast guard has certified the ship for unloading, the firms that execute those transfers, known as lightering, are too concerned about Iranian retaliation to handle the seized oil.
In April, the US seized the Iranian oil tanker Suez Rajan just days before Tehran detained a tanker carrying American cargo in the Gulf of Oman.
A Houston-based energy executive entangled in the situation admitted that companies "are literally afraid to do it." According to him, numerous companies that were contacted rejected the offer to unload the oil.
Another executive wondered "if anybody's going to touch it."
The standoff over the stolen oil highlights the failure of the US administration in implementing sanctions against Iran, as Tehran has allegedly become bolder, according to the report, in its maritime expeditions, including the Iranian Navy's plans to establish a new naval coalition with Saudi Arabia, UAE, Qatar, Bahrain. and Iraq.
A former US official believes that the current situation represents “a much bigger drama that’s playing out about how we deal with Iranian threats."
Earlier, the Naval Forces of the Islamic Revolution Guard Corps announced that its forces seized a foreign oil tanker carrying one million liters of smuggled oil.
On July 6, the forces of the IRGC 2nd Naval District inspected Nada II-a Tanzania-flagged chemical tanker carrying smuggled fuel.
Brigadier General Ramezan Zirahi recalled that the Americans were forced back in November 2021, during a complex operation in the Sea of Oman, to flee the area "humiliated" with 5 military frigates, a number of fighters, helicopters, and manned and unmanned aircraft.
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