Lawmakers Call on Biden to Resolve Delay in Transfer of Seized Iranian Oil
Lawmakers from both major political parties in the United States have urged President Joe Biden and his administration to address the ongoing delay in the transfer of a cargo of oil from a seized Iranian tanker. The vessel, named Suez Rajan, has been stranded near Galveston, Texas since May 30th. Shipping companies are hesitant to unload the oil as they fear it could lead to other oil buyers avoiding their ships in future voyages. The U.S. seized the tanker as part of a sanctions enforcement operation.
In a letter to President Biden and senior administration officials, Senators Joni Ernst, a Republican, and Richard Blumenthal, a Democrat, along with other lawmakers, highlighted the need to resolve the situation promptly. They emphasized that continual fears of retaliation from Iran impede the enforcement of petroleum sanctions and render them irrelevant. The lawmakers urged the administration to provide a briefing on the progress of transferring the seized oil into U.S. custody.
The White House has yet to respond to the letter.
The current predicament of the tanker occurs as Washington and Tehran negotiate the release of five detained U.S. citizens in exchange for unfreezing $6 billion of Iranian funds held in South Korea. A potential deal would alleviate tensions between the two nations, which have been at odds over a range of issues, from the Iranian nuclear program to Tehran’s support for regional Shi’ite militias.
The lawmakers estimated the value of the oil on the Suez Rajan, which holds around 800,000 barrels, to be approximately $56 million. Seizures of Iranian oil by the U.S. contribute funds to the U.S. Victims of State Sponsored Terrorism Fund, which provides compensation for victims of attacks. However, an official from the fund has determined that there are insufficient assets for payment rounds next year, affecting nearly 16,000 Americans.
Efforts by lawmakers to expedite the transfer of the seized oil demonstrate the larger challenges the Biden administration faces in dealing with Iran. The situation highlights the complex dynamics between the two countries, especially as they navigate negotiations regarding detained individuals and frozen funds.
As U.S. representatives seek resolution, it remains to be seen how the Biden administration will respond to their calls. The outcome will have implications not only for the transfer of the seized oil but also for the broader relationship between the U.S. and Iran.
