LONDON — The U.S. Department of Justice has applied to seize the Iranian tanker Grace 1, which is being held in Gibraltar on suspicion of smuggling oil to Syria in breach of European Union sanctions, the British overseas territory said on Thursday.

“The U.S. Department of Justice has applied to seize the Grace 1 on a number of allegations which are now being considered,” the Gibraltar government said in a statement. “The matter will return to the Supreme Court of Gibraltar at 4 p.m. (1400 GMT) today.” (Reporting by Michael Holden; editing by Kate Holton) </s> Authorities in Gibraltar have released the Iranian oil tanker Grace 1, after receiving assurances that its cargo is not destined for Syria. The US had formally requested them to detain the vessel for a further period.

Gibraltar Chief Minister Fabian Picardo agreed to lift the detention on the ship, however, after Tehran gave written assurances that its cargo – 2.1 million barrels of oil – would not be unloaded in Syria.

“In light of the assurances we have received, there are no longer any reasonable grounds for the continued legal detention of the Grace 1 in order to ensure compliance with the EU Sanctions Regulation,” he said.

The United States requested the government of Gibraltar not to release the tanker.

“The US Department of Justice has applied to seize the Grace 1 on a number of allegations, which are now being considered,” the Gibraltar government said in a statement, adding that the issue would be reviewed in the courts later on Thursday afternoon.

Iran’s ambassador to the UK, Hamid Baeidinejad, called Washington’s move “its desperate, last-minute efforts, intended to prevent the release of the [Grace 1] oil tanker from detention” that ended with “humiliation.”

Iranian Foreign Minister Javad Zarif also weighed in on Twitter, calling the move an attempt at “piracy.”

“The US attempted to abuse the legal system to steal our property on the high seas,” Zarif said. “This piracy attempt is indicative of Trump admin’s contempt for the law.”

The Grace 1 was seized by the UK outside of Gibraltar in early July, prompting Tehran, two weeks later, to seize a British-flagged vessel in the Persian Gulf. Both sides have denied there were plans to exchange the ships. </s> FILE PHOTO: A small boat sails past Iranian oil tanker Grace 1 as it sits anchored after it was seized in July by British Royal Marines off the coast of the British Mediterranean territory on suspicion of violating sanctions against Syria, in the Strait of Gibraltar, southern Spain August 13, 2019. REUTERS/Jon Nazca/File Photo

LONDON (Reuters) - The U.S. Department of Justice has applied to seize the Iranian tanker Grace 1, which is being held in Gibraltar on suspicion of smuggling oil to Syria in breach of European Union sanctions, the British overseas territory said on Thursday.

“The U.S. Department of Justice has applied to seize the Grace 1 on a number of allegations which are now being considered,” the Gibraltar government said in a statement. “The matter will return to the Supreme Court of Gibraltar at 4 p.m. (1400 GMT) today.” </s> GIBRALTAR (Reuters) - The United States has issued a warrant to seize an Iranian oil tanker caught in the standoff between Tehran and the West in a last ditch effort to prevent the vessel from leaving Gibraltar.

The Grace 1 was seized by British Royal Marines at the western mouth of the Mediterranean on July 4 on suspicion of violating European Union sanctions by taking oil to Syria.

Gibraltar lifted the detention order on Thursday after the British territory’s chief minister said he had secured written assurances from Tehran that the cargo would not go to Syria.

But with the vessel and its 2.1 million barrels of oil free to leave, the United States launched a separate legal appeal to impound the ship on the grounds that it had links to Iran’s Islamic Revolutionary Guard Corps (IRGC), which it designates as a terrorist organization.

A federal court in Washington issued a warrant to seize the tanker, the oil it carries and nearly $1 million.

“A network of front companies allegedly laundered millions of dollars in support of such shipments,” the U.S. attorney for the District of Columbia, Jessie Liu, said in a news release.

“The scheme involves multiple parties affiliated with the IRGC and furthered by the deceptive voyages of the Grace 1.”

The U.S. State Department did not immediately respond to a request for comment on how the warrant, which was addressed to “the United States Marshal’s Service and/or any other duly authorized law enforcement officer,” may be enforced.

The Pentagon declined to comment, as did Britain’s Foreign Office.

Asked on Friday about the U.S. intervention, Gibraltar’s chief minister, Fabian Picardo, said that would be subject to the jurisdiction of Gibraltar’s Supreme Court. “It could go back to the court absolutely.”

The Gibraltar Chronicle newspaper reported that the vessel was unlikely to sail before Sunday, citing an unnamed source who added that it was waiting for six new crew members including a captain to arrive.

The Grace 1 had its name erased and it was no longer flying a Panama flag.

Iranian state television had quoted Jalil Eslami, deputy head of the country’s Ports and Maritime Organisation, as saying the tanker would depart for the Mediterranean after being reflagged under the Iranian flag and renamed Adrian Darya. </s> LONDON, Aug 15 — The United States has applied to seize the Iranian Grace 1 tanker in Gibraltar commandeered by British Royal Marines in the Mediterranean last month, complicating a possible tanker swap between Britain and the Islamic Republic.

The Grace 1 oil tanker was seized by marines in a daring landing in darkness off the coast of the British overseas territory on July 4. Gibraltar said the tanker was suspected of smuggling oil to Syria in breach of European Union sanctions.

As tensions grew with Tehran, Iran’s Revolutionary Guards seized the British-flagged Stena Impero in the Gulf on July 19.

Gibraltar was due to release the Grace 1 vessel but just hours before, the US Department of Justice sought to seize it.

“The US Department of Justice has applied to seize the Iranian supertanker Grace 1 in Gibraltar, just hours before the Gibraltar Government was poised to release it,” said the Gibraltar Chronicle newspaper, which was first to report the news.

The Gibraltarian court’s chief justice, Anthony Dudley, made clear that were it not for the US move, “the ship would have sailed,” the Chronicle reported.

It was not immediately clear to what the US Justice Department’s application related.

The application means that a decision on the fate of Grace 1 will not be made until later today. The government of Gibraltar did not immediately comment on the report.

The captain and three officers of the Grace 1 have been released from arrest.

A source in Gibraltar told Reuters ahead of the court hearing that the Grace 1 would likely be allowed to leave, stoking speculation about a possible tanker swap with Iran. — Reuters </s> A crew member checks the new name of Iranian oil tanker Adrian Darya, formerly known as Grace 1, off the coast of Gibraltar on Sunday (AFP photo)

GIBRALTAR — Gibraltar on Sunday rejected a US demand to seize an Iranian oil tanker at the centre of a diplomatic dispute as it prepared to leave the British overseas territory after weeks of detention.

Gibraltar's government said it could not seek a court order to detain the supertanker because US sanctions against Iran were not applicable in the European Union.

"The EU sanctions regime against Iran — which is applicable in Gibraltar — is much narrower than that applicable in the US," the Gibraltar authorities said in a statement.

Iran's ambassador to London said in a Tweet that "the vessel should set sail this evening", with fresh crew arriving.

A Gibraltar judge ordered the Grace 1 tanker released on Thursday, weeks after authorities seized the vessel on suspicion of transporting oil to Syria in breach of European sanctions. Iran has repeatedly denied this.

But on Friday the US Justice Department filed a request to detain the ship alleging it was involved in supporting illicit shipments to Syria by Iran's Islamic Revolutionary Guard Corps, listed as a terrorist group by Washington.

The seizure triggered a sharp deterioration in relations between Tehran and London. Iran subsequently detained the British-flagged tanker Stena Impero in what was seen as a tit-for-tat move.

The US Justice Department says the Grace 1 — now renamed the Adrian Darya — and its oil are subject to forfeiture because of US sanctions violations. </s> Get breaking news alerts and special reports. The news and stories that matter, delivered weekday mornings.

The U.S. has filed a warrant to seize all oil aboard an Iranian oil tanker impounded in Gibraltar last month as well as nearly $1 million, according to federal court documents unsealed on Friday.

The seizure warrant and forfeiture complaint is based on the International Emergency Economic Powers Act as well as other statutes that deal with money laundering, bank fraud and a terrorism forfeiture statute, the Department of Justice said.

The tanker, Grace 1, was detained last month in a British Royal Navy operation off of Gibraltar, and it was suspected of violating European Union sanctions on oil shipments to Syria, which is an ally of Iran.

Gibraltar officials had said this week that the U.S. Department of Justice had applied to seize the Grace 1.

While the U.S. announced it obtained the warrant to seize the tanker, Gibraltar court officials said they had not received any claim by the end of the business day, and it was not clear whether the U.S. had forwarded it, the Associated Press reported.

The U.S. government claims in the court documents that the Grace 1, which is capable of carrying more than 2 million barrels of crude oil, is part of a scheme to support illicit shipments from Iran by that country’s Revolutionary Guard Corps. President Donald Trump has designated the guard corps as a foreign terrorist organization.

The U.S. says that the oil tanker engaged in "deceptive voyages" from Iran to other locations, including Syria.

"The scheme involves multiple parties affiliated with the IRGC and furthered by the deceptive voyages of the Grace 1. A network of front companies allegedly laundered millions of dollars in support of such shipments," the Justice Department said in a statement, referring to the Revolutionary Guard Corps.

On Thursday, Gibraltar's government confirmed that the oil tanker has been released from legal detention. The tanker shifted its position on Friday, but its anchor was still down off Gibraltar and it was unclear if it was ready to set sail soon, Reuters reported. Gibraltar is an overseas British territory.

Gibraltar's chief minister, Fabian Picardo, has said that he received assurances from Iran that the tanker would not head to an entity that is subject to E.U. sanctions. A Gibraltar government spokesperson said that Iran has provided commitments, but also that evidence located aboard the Grace 1 "demonstrates that the vessel was going to Syria."

The U.S. court documents allege that before the tanker was seized by British authorities, "a confidential source revealed that the Grace I was scheduled to arrive in Syria in early July."

The documents claim that charts and electronic equipment on board show the tanker was destined for a port in Syria, which would be in violation of U.S. sanctions.

The seizure of Grace 1, which occurred on July 4, became a simmering point in the ongoing tensions between Iran and the west.

Weeks after the tanker was seized by British authorities, Iran seized a British oil tanker, the Stena Impero, in the Strait of Hormuz.

Iran's ambassador to the U.K. has called the seizure and detention of the Grace 1 an illegal act. Iran's foreign minister, Mohammad Javad Zarif, tweeted on Thursday that "detention was 100% unlawful."

In addition to the tanker and the oil aboard, the U.S. is seeking to seize $999,950 that it says is at a U.S. bank which was not named, according to the unsealed court documents. </s> Madrid -- The United States moved on Thursday to seize an Iranian supertanker detained in Gibraltar for breaching international sanctions on oil shipments. The last minute intervention by Washington could thwart efforts by authorities in London and the British overseas territory to defuse tensions with Tehran.

The Gibraltar government confirmed earlier media reports that the U.S. Department of Justice had sought to extend the detention of the oil tanker Grace 1, prompting the Supreme Court in the territory to adjourn a scheduled decision on whether to release the ship until later in the day.

"The U.S. Department of Justice has applied to seize the Grace 1 on a number of allegations which are now being considered," the government said in a statement sent to CBS News and other media, adding that the matter would be reviewed by the court at 4 p.m. local time.

The Justice Department did not immediately respond to a request for comment. 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 could not comment further as the investigation was ongoing.

While there was no immediate reaction from Iran, the U.S. move likely will further stir tensions in the Persian Gulf.
• None Iran warns of increasing "risk of combustion" in Gulf

The detention of the Grace 1 saw Iran seize the British-flagged oil tanker Stena Impero, which remains held by the Islamic Republic. Analysts had hoped the release of the Grace 1 by Gibraltar would see the Stena Impero similarly released.

Reports by media in Gibraltar and Iran suggested earlier Thursday that the Grace was likely to have been released by authorities in Gibraltar prior to the U.S. government's request. The vessel's captain and senior officers were reportedly released from custody.

"The ship would have sailed"

The Grace 1 was seized last month in a British Royal Navy operation off Gibraltar. The vessel was suspected of violating European Union sanctions on oil shipments to Syria, and its seizure deepened international tensions in the Persian Gulf.

The Gibraltar government had said it was seeking to "de-escalate" the situation over the Grace 1.

Speculation on the impending released had mounted around Thursday's hearing at the Gibraltar Supreme Court. But a lawyer representing the territory's General Attorney Michael Llamas said the U.S. had moved at the eleventh hour.

The Gibraltar Chronicle reported that the captain and three officers of the Grace 1 had been released from arrest on Thursday, but the report could not be confirmed. A Gibraltar government spokesman declined to comment.

Speaking in court, Chief Justice Anthony Dudley said that were it not for the U.S. move, "the ship would have sailed," the Chronicle reported.

Tensions have escalated in the region since President Donald Trump over a year ago unilaterally withdrew the U.S. from Iran's 2015 nuclear deal with world powers. The decision stopped billions of dollars' worth of business deals, largely halted the sale of Iran's crude oil internationally and sharply depreciated Iran's currency, the rial.

In recent weeks, Iran has begun to step away from the nuclear 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.

As CBS News correspondent Imtiaz Tyab reported from the Iranian city of Bandar Abbas on Wednesday, the Trump administration has sent mixed signals following a series of defiant actions by Tehran since the U.S. re-imposed harsh sanctions following its withdrawal from the nuclear deal.

In mid-June, Mr. Trump approved but then suddenly called off targeted airstrikes against Iran to retaliate for the Islamic Republic downing an American surveillance drone.

A month later the president was muted in his response to Iranian commandos seizing the British-flagged Stena Imperio.

The uncertainty over U.S. intentions isn't making life any easier for Iranians hit hard by the harsh economic sanctions, reported Tyab, and although some residents in Bandar Abbas told CBS News they're worried about a possible war, they all said it was the economy they're most concerned about. </s> Gibraltar refused a US request to seize the Iranian tanker Grace 1 on Sunday, saying it was unable to comply because it was bound by European Union law.

A federal court in Washington on Friday issued a warrant for the seizure of the tanker, the oil it carries and nearly $1 million.

British Royal Marines had detained the vessel in Gibraltar in July on suspicion that it was carrying oil to Syria in violation of EU sanctions.

“The Central Authority’s inability to seek the Orders requested is a result of the operation of European Union law and the differences in the sanctions regimes applicable to Iran in the EU and the US,” a Gibraltar government statement said.

“The EU sanctions regime against Iran - which is applicable in Gibraltar - is much narrower than that applicable in the US.”

Earlier on Sunday, the tanker has raised an Iranian flag and has had a new name painted on its side, Reuters images of the stationary vessel filmed off Gibraltar showed on Sunday.

Last Update: Sunday, 18 August 2019 KSA 15:38 - GMT 12:38
Gibraltar says the United States has applied to seize the Iranian oil tanker Grace 1, which is being held by the United Kingdom territory for an alleged breach of European Union sanctions against Syria.