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> 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 </s> A Gibraltar court rejected a U.S. attempt to seize an Iranian oil tanker on Sunday, and the ship resumed its journey into the Mediterranean under the Iranian flag and with a new name.

The Grace 1 supertanker, renamed the Adrian Darya 1, had been anchored off Gibraltar since it was intercepted by the British navy July 4 on the grounds that it was carrying oil to Syria in violation of European Union sanctions. Authorities in Gibraltar lifted the detention order last week after Britain, which rules the territory, received assurances from Iran that the tanker would not take its cargo of 2.1 million barrels of oil to Syria.

But late Friday, the United States intervened, issuing a warrant for the seizure of the ship and its cargo, claiming it was violating not only U.S. sanctions against Syria but also those against Iran.

The Gibraltar court ruled that the American sanctions on Iran, which were imposed by President Trump after he walked away from the Iran nuclear deal last year, do not apply in the European Union.

The sanctions violations charged in the U.S. warrant "would not constitute offenses had they occurred in Gibraltar," the government said in a statement. "There are no equivalent sanctions against Iran in Gibraltar, the UK or the rest of the EU."

Late on Sunday night, the tanker left Gibraltar and sailed into the Mediterranean with a stated destination of the Greek port of Kalamata, according to the website marinetraffic.com.

Iran's ambassador to Britain, Hamid Baeidinejad, also confirmed on Twitter that the tanker was underway.

Among the charges laid out in the U.S. warrant is that the tanker was facilitating terrorism because of the involvement in Iran's oil industry of the Islamic Revolutionary Guard Corps, which is designated a terrorist organization by the United States. The Gibraltar ruling noted that the E.U. does not regard the IRGC as a terrorist organization.

The court's rejection of the U.S. request raises new questions over where the tanker will go next and whether the United States will attempt to intervene again, perhaps by forcibly intercepting it. No such action has been proposed, but Iranian media speculated that the U.S. Navy, which maintains several bases in the Mediterranean, might attempt to seize the vessel.

Iran's navy commander, Rear Adm. Hossein Khanzadi, offered to dispatch the Iranian navy to escort the Adrian Darya 1, according to Iran's Mehr news agency.

The tanker had been set to leave Gibraltar on Friday after the court lifted its detention order, but the captain and five crew members quit, leaving the ship's owners to recruit replacements.

Photographs posted on social media showed the vessel, painted with its new name and flying the Iranian flag, being readied for departure by men in orange uniforms.

It was unclear whether Iran would release the British tanker seized in the Persian Gulf in apparent retaliation for Britain's detention of the Grace 1, as the ship was then called. </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> 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> 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> 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> 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 (Reuters) - The Iranian tanker caught in a stand-off between Tehran and the West is expected to leave Gibraltar on Sunday night, Iran’s ambassador to Britain said, hours after the British territory rejected a U.S. request to detain the vessel further.

British Royal Marines seized the tanker in Gibraltar in July on suspicion that it was carrying oil to Syria, a close ally of Iran, in violation of European Union sanctions. That triggered a series of events that have heightened tensions on international oil shipping routes through the Gulf.

“The vessel is expected to leave tonight,” envoy Hamid Baeidinejad said on Twitter, adding that two engineering teams had been flown to Gibraltar.

The Grace 1’s detention ended last week, but on Friday a federal court in Washington issued a warrant for the seizure of the tanker, the oil it carries and nearly $1 million.

Gibraltar said on Sunday it could not comply with that request because it was bound by EU law.

“The EU sanctions regime against Iran – which is applicable in Gibraltar - is much narrower than that applicable in the US,” the government said in a statement.

“The Gibraltar Central Authority is unable to seek an Order of the Supreme Court of Gibraltar to provide the restraining assistance required by the United States of America.”

Washington had attempted to detain the Grace 1 on the grounds that it had links to Iran’s Islamic Revolutionary Guard Corps (IRGC), which it has designated a terrorist organization.

Iran has denied the tanker was ever headed to Syria.

Tehran said it was ready to dispatch its naval fleet to escort the tanker - now renamed the ‘Adrian Darya-1’ - if required.

“The era of hit and run is over ... if top authorities ask the navy, we are ready to escort out tanker Adrian,” Iran’s navy commander, Rear Admiral Hossein Khanzadi was quoted as saying by Mehr news agency.

On Sunday, video footage and photographs showed the tanker flying the red, green and white flag of Iran and bearing its new name, painted in white, on the hull. Its previous name, ‘Grace 1’, had been painted over. The vessel’s anchor was still down.

The initial impounding of the Grace 1 sparked a diplomatic row that escalated when Tehran seize a British-flagged oil tanker in the Gulf two weeks later. That tanker, the Stena Impero, is still detained.

The two vessels have since become pawns in a bigger game, feeding into wider hostilities since the United States last year pulled out of an international agreement to curb Iran’s nuclear program, and reimposed economic sanctions.

Iran has denounced U.S. efforts to set up an international maritime security coalition in the Gulf and insisted regional countries could protect the strategic waterway and work toward signing a non-aggression pact.

On a trip to Kuwait on Sunday, Iranian Foreign Minister Mohammad Javad Zarif said in a tweet that “Iran’s proposal for Regional Dialogue Forum and non-aggression pact trumps reliance on extraneous actors”.

The Grace 1 had originally flown the Panamian flag but Panama’s Maritime Authority said in July that the vessel had been de-listed after an alert that indicated the ship had participated in or was linked to terrorism financing.
Gibraltar authorities reject the request by the U.S. to seize the Iranian oil tanker Grace 1. They argue that EU, not U.S. law, is applicable in Gibraltar. The tanker is also renamed.