Iran confiscates US oil by court ruling in sanctions case

Iran has confiscated $50mn worth of American crude from a tanker seized last year by order of a Tehran court in a lawsuit against the United States for its sanctions, Fars News Agency reported on March 6.

The Marshall Islands-flagged Advantage Sweet was seized in April 2023 in the Gulf of Oman by Iran's army, which claimed it had collided with an Iranian fishing craft, resulting in the injury of Iranian crew members.

It said the vessel had attempted to flee the scene in serious breach of international laws and regulations.

The vessel, that had been chartered by US firm Chevron Corp, had picked up oil from Kuwait and was bound for Texas.

Iranian media said the order of seizure was issued for a lawsuit filed by Iranian patients of epidermolysis bullosa (EB), a rare skin disease, against the US for the "severe physical and mental harm" caused by the non-provision of Swedish-made medicine as a result of American sanctions.

Iran has been under sweeping sanctions by the US since Washington’s unilateral withdrawal from the 205 nuclear deal six years ago.

Although food and medicine are exempt from the sanctions, Iranian officials claim it has prevented the supply of those humanitarian goods.

Orders for the unloading of the US oil would be issued subsequently, according to Fars.

In August 2023 the US unloaded a cargo of Iranian oil off the coast of Texas from a Marshall Islands-flagged tanker, named Suez Rajan, which it had seized earlier.

The same tanker, under the name of St Nikolas, was seized in the Gulf of Oman by Iran's Navy in January following a court order as retaliation for what Iranian officials called the US "stealing" of Iran's oil.