The U.S. is trying to seize around 2 million barrels of what it thinks is Iranian oil, consistent with people conversant in the matter, in Washington’s latest plan to block the Islamic Republic’s energy exports. The crude is on board the Liberia-flagged Achilleas, which is sailing to the U.S. after the Department of Justice issued a seizure order, said the people, who asked to not be identified as they’re not authorized to talk to media.
The order came before Joe Biden succeeded Donald Trump as U.S. president on Jan. 20, consistent with the people. Under Trump, Washington tightened sanctions on Iran in an attempt to halt its oil sales, end its nuclear activities and stop it interfering in other Middle Eastern countries.
The Achilleas’ Greek owner, warship Management Corp., alerted U.S. authorities to the likelihood it had unknowingly taken on Iranian crude, after initially believing it came from Iraq, said the people. The vessel is fully loaded and may carry quite 2 million barrels, consistent with shipping documents. A spokesperson of Department of Justice denied to comment.
Biden has said he wants to renegotiate a nuclear pact with Iran that Trump abandoned in 2018. But Biden’s nominee for Secretary of State, Antony Blinken, said last week a rapprochement may be a “long way” off.
Still, Tehran has said it’s already increasing oil exports in anticipation that Biden will take a softer line. Several firms that monitor Iranian output including Petro-Logistics SA, Kpler Ltd. and SVB International have said shipments are creeping up.
Iran pumped about 2 million barrels of crude each day in December, consistent with data compiled by Bloomberg. That’s barely half what it had been producing before Trump left the nuclear deal, referred to as the Joint Comprehensive Plan of Action, and tightened sanctions. Of today’s output, only around 10% is exported, most of it to China.
The Achilleas, a vessel referred to as a really Large Crude Carrier, received its oil from another ship at the United Arab Emirates port of Fujairah in November. consistent with the shipping documents, the Achilleas was then scheduled to sail to the Omani capital of Muscat.
Ship-tracking data compiled by Bloomberg detected no signals from the vessel from Jan. 1 until Jan. 13. However, warship Management provided documentation showing the Achilleas continued to emit signals for the duration of its journey. It’s now traveling across the South Atlantic Ocean.
The U.S. has tried to seize Iranian petroleum before. Last year, it intercepted vessels it said were carrying gasoline from the Islamic Republic to Venezuela. Many ships leaving Iran cut their transponders, making it difficult to trace them and to calculate the extent of the country’s exports, which the govt doesn’t disclose.