The United States has officially confirmed the seizure of nearly one million barrels of Iranian oil earlier this year. The seizure, initially reported in April by Reuters, was confirmed by the US Department of Justice on Friday. The oil is now the subject of a civil forfeiture action, as the shipping company operating the oil-carrying vessel, Suez Rajan Limited, pleaded guilty to conspiring to violate US sanctions. This marks the first-ever criminal resolution involving a company that facilitated the illicit sale and transport of Iranian oil.
The US Department of Justice praised the “successful disruption of a multimillion-dollar shipment of crude oil by the Islamic Revolutionary Guard Corps (IRGC),” which is designated as a “foreign terrorist organization” in the US. This confirmation of the seizure comes as the US and Iran are finalizing a prisoner swap deal, despite ongoing issues related to sanctions and Iran’s nuclear program.
After seizing the Iranian oil earlier this year, the US accused Tehran of seizing several international ships passing through the Gulf. In response, the Pentagon announced the deployment of thousands of additional US troops to the region to support deterrence efforts and protect shipping lanes, including the Strait of Hormuz.
While the US views the interception of Iranian oil ships as law enforcement, Iran has characterized the seizure of Iranian property in international waters as piracy. Iranian officials have vowed not to stand idly by in the face of such violations.
The US began offloading the Iranian oil near Texas in August, and US prosecutors are seeking a court order to gain possession of the oil based on US terrorism and money laundering laws, as Iran is on the list of “state sponsors of terrorism.” Meanwhile, efforts to revive talks over the 2015 nuclear deal between the US and Iran continue, with Iran curbing its nuclear program in exchange for sanctions relief. The Biden administration aims to deter Iran from pursuing a nuclear weapon while managing the consequences of previous decisions regarding the nuclear deal.
