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> 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> LONDON/GIBRALTAR (Reuters) - The United States applied on Thursday to seize an Iranian tanker in Gibraltar, halting its expected release at the last minute and preventing a possible swap for British-flagged tanker held by Iran.

The Grace 1 oil tanker was seized by Royal Marine commandos in a landing in darkness off the coast of the British overseas territory on July 4.

Gibraltar said the tanker was suspected of selling oil to Syria in breach of European Union sanctions. Two weeks later, Iran’s Revolutionary Guards seized the British-flagged Stena Impero in the Gulf on July 19.

Gibraltar was widely expected to release the Grace 1 on Thursday, but just hours before, the U.S. Department of Justice sought to seize it.

“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 of Gibraltar said, adding the matter would return to the supreme court of Gibraltar at 1400 GMT on Thursday.

Further details were not immediately released about the grounds for the U.S. Justice Department’s application. The U.S. Justice Department was not immediately available for comment.

The Gibraltar Chronicle newspaper, which was first to report the news, said the court’s chief justice, Anthony Dudley, made clear that were it not for the U.S. move, “the ship would have sailed”.

While both Britain and Iran deny they were planning to swap the vessels for each other, there has been widespread expectation that the Britsh-flagged ship will not be freed until the Iranian tanker is released.

The two seized tankers - one in Gibraltar and one in Iran - are seen as a pawns in the standoff between Iran and the West, with their fate tangled in the diplomatic differences between the EU’s big powers and the United States.

European countries including Britain strongly disagreed with Washington’s decision last year to abandon an international agreement that guaranteed Iran access to trade in return for curbs to its nuclear program.

Washington has imposed sanctions on Iran with the aim of halting its oil exports altogether. European countries have lifted sanctions against Iran itself but still have a ban on selling oil to Syria, in place since 2011.

Gibraltar denies that it was ordered to detain the Grace 1, which was carrying up to 2.1 million barrels of oil, but several diplomatic sources have said the United States asked the United Kingdom to seize the vessel.

Britain, which has insisted its Iran policy will not change under new Prime Minister Boris Johnson who took office last month, has repeatedly indicated it wants a compromise over the tanker.

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

A source in Gibraltar had told Reuters ahead of Thursday’s court hearing that the Grace 1 would probably be allowed to leave, stoking speculation about a possible tanker swap with Iran.

Britain has announced plans to join a U.S.-led maritime security mission in the Gulf.

Iranian navy commander Rear Admiral Hossein Khanzadi repeated Iran’s longstanding demand that Western navies leave the Gulf, which Iran says should be patrolled only by the countries of the region, ISNA news agency reported on Thursday.

“The enemies of the region, America, England and the Zionist regime and their allies, should know that the time of parading, loitering and putting on a hypocritical show in the Persian Gulf region and the sea of Oman is over,” Khanzadi said, according to ISNA.

“The enemies must leave the region as quickly as possible.” </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> US move halts release of Iranian tanker held in Gibraltar

MADRID (AP) — The United States moved on Thursday to halt the release of an Iranian supertanker detained in Gibraltar for breaching international sanctions on oil shipments, thwarting 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. Justice Department seeks 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 Gibraltar government said in a statement, adding the matter would be reviewed by the court at 4 p.m.

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 couldn't comment further.

Prime Minister Boris Johnson's Downing Street office said Iran was discussed during the U.K. leader's meeting with President Donald Trump's national security adviser John Bolton earlier in the week, though no details were released on the talks.

While there was no immediate reaction from Tehran, the U.S. move likely will further stir tensions in the Persian Gulf.

The Grace 1, carrying 2.1 million barrels of Iranian crude oil, 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. Iran called the seizure by Gibraltar an "act of piracy."

Shortly after the detention of the Grace 1, Iran seized 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.

In past weeks, the Persian Gulf region has seen six attacks on oil tankers that the U.S. has blamed on Iran and the downing of a U.S. surveillance drone by Iranian forces. Iran has denied being behind the tanker attacks. Iran also has seized other oil tankers.

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

Signaling preparations for the expected release of the ship, the captain, an Indian national, and three officers of the Grace 1 were released from detention Thursday, the government said.

The whereabouts of the released crew, none of whom are Iranian, were not immediately known. The crew of the Grace 1 includes sailors from India, Pakistan and Ukraine, according to Iranian state television.

As speculation mounted over the Grace 1's release, a lawyer representing the territory's General Attorney Michael Llamas announced during a Thursday morning hearing at the Gibraltar Supreme Court that the U.S. had moved at the eleventh hour.

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

This is the second time the Trump administration has moved to seize a ship in recent months. In May, the Justice Department announced that it had seized a North Korean cargo ship used to supply coal to the isolated nation in violation of international sanctions.

Tensions have escalated in the Persian Gulf region since 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.

Lina Khatib, head of the Middle East and North Africa program at Chatham House, said the U.S. request on the Grace 1 was based on its own imposed sanctions on Iran.

"Although the U.S. expects its European allies to abide by these sanctions, it is up to the Gibraltar authorities to assess the allegations presented by the U.S.," Khatib said. "The Gibraltar court could decide to hand over custody of the ship to the U.S., which would give the U.K. a much needed get-out clause from the tension caused by the ship's seizure."

Resolving the tanker dispute would help Prime Minister Johnson focus on domestic issues as he works to complete Britain's exit from the European Union and prepare for anticipated national elections over the next few months.

Dryad Global, a U.K.-based maritime security consultant, earlier this week suggested the Grace 1 would soon be released, citing Britain's domestic politics. But while a resolution to the tanker dispute could ease the situation at home, it may increase tensions with the U.S., Britain's most important international ally.

The U.S. has been asking its allies to take part in a naval mission to protect shipping in the strategic Strait of Hormuz, at the Mouth of the Persian Gulf, though European nations have been reluctant.

Britain has so far been the only one to express willingness to join a maritime security mission. It has also been giving U.K.-flagged vessels a naval escort since the Iranian Revolutionary Guard's seizure of the Stena Impero in the Gulf.

Gambrell reported from Dubai, United Arab Emirates. Associated Press writers Jill Lawless and Danica Kirka in London, Eric Tucker in Washington and Amir Vahdat in Tehran, Iran, contributed to this report. </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> Madrid – The United States moved on Thursday to seize an Iranian supertanker detained in Gibraltar for breaching international sanctions on oil shipments, thwarting 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, 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 Tehran, the U.S. move likely will further stir tensions in the Persian 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.

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.

Gambrell reported from Dubai, United Arab Emirates. Associated Press writer Jill Lawless in London contributed to this report. </s> MADRID — The United States moved on Thursday to halt the release of an Iranian supertanker detained in Gibraltar for breaching international sanctions on oil shipments, thwarting 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 Gibraltar government said in a statement, 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.

Prime Minister Boris Johnson’s Downing Street office said that Iran was discussed during the U.K. leader’s meeting with Donald Trump’s national security adviser John Bolton earlier in the week, though no details were released on the talks.

While there was no immediate reaction from Tehran, the U.S. move likely will further stir tensions in the Persian 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.

In past weeks, the Persian Gulf region has seen six attacks on oil tankers that the U.S. has blamed on Iran and the downing of a U.S. surveillance drone by Iranian forces. Iran has denied being behind the tanker attacks.

Iran also has seized other oil tankers.

The Grace 1, carrying 2.1 million barrels of Iranian crude oil, 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. Iran called the seizure by Gibraltar an “act of piracy.”

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

Signaling preparations for the expected release of the ship, the captain, an Indian national, and three officers of the Grace 1 had been released from detention, a Gibraltar government spokesman told The Associated Press. The spokesman was not authorized to be identified by name in the media.

The whereabouts of the released crew, none of whom are Iranian, were not immediately known. The crew of the Grace 1 includes sailors from India, Pakistan and Ukraine, according to Iranian state television.

As speculation mounted over the Grace 1’s release, a lawyer representing the territory’s General Attorney Michael Llamas announced during a Thursday morning hearing at the Gibraltar Supreme Court that the U.S. had moved at the eleventh hour.

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

This is the second time the Trump administration has moved to seize a ship in recent months. In May, the Justice Department announced that it had seized a North Korean cargo ship used to supply coal to the isolated nation in violation of international sanctions.

At the time, U.S. officials said the ship, the Wise Honest, was one of North Korea’s largest bulk carriers and for several years had been used to deliver Russian coal to North Korea.

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. </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.
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.