American-Owned Oil Tanker Offloads Suspected Iranian Crude Amid Gulf Tensions
An American-owned oil tanker, the Suez Rajan, suspected of carrying sanctioned Iranian crude oil, has begun offloading its cargo near Texas, tracking data has shown. This development comes at a time of heightened tensions between the United States and Iran, with Tehran threatening to target shipping in the Persian Gulf. The fate of the cargo aboard the Suez Rajan has become entangled in the broader negotiations between the two countries, as they work towards a trade of frozen Iranian assets for the release of five Iranian-Americans held in Tehran.
The paramilitary Revolutionary Guard of Iran has issued a stern warning to those involved in offloading the cargo, stating that they should expect retaliation. In response, the US Navy has increased its presence in the Middle East, deploying the USS Bataan and considering the placement of armed personnel on commercial ships traveling through the Strait of Hormuz to prevent further ship seizures by Iran.
Ship-tracking data revealed that the Marshall Islands-flagged Suez Rajan is currently undergoing a ship-to-ship transfer of its oil to another tanker, the Mr Euphrates, near Galveston, Texas. This transfer will likely enable the offloading of the cargo. However, neither US officials nor the owners of the Suez Rajan, Los Angeles-based private equity firm Oaktree Capital Management, have provided any immediate comment on the matter.
The saga surrounding the Suez Rajan began earlier this year when United Against Nuclear Iran expressed suspicion that the tanker was carrying oil from Iran’s Khargh Island. Despite months of being stationed in the South China Sea without explanation, the tanker suddenly set sail for the Gulf of Mexico. It is believed that the vessel’s cargo may have been seized by American officials, although no public court documents have been made available thus far.
Meanwhile, Iran has previously seized two tankers near the Strait of Hormuz, including one carrying cargo belonging to the US oil major Chevron Corp. Last month, the commander of Iran’s Revolutionary Guard naval arm issued a threat against anyone offloading the Suez Rajan, linking the recent seizures to the fate of the tanker’s cargo.
The UN mission of Iran and Western-backed naval organizations in the Persian Gulf have not yet provided comments on the offloading of the Suez Rajan. In recent days, naval organizations have issued warnings about an increased risk of ship seizures by Iran in the vicinity of the Strait of Hormuz.
The 2015 nuclear deal between Iran and world powers allowed Iran to resume openly selling oil on the international market. However, in 2018, former President Donald Trump unilaterally withdrew from the accord and reimposed American sanctions, effectively crippling Iran’s crude oil trade. This marked the beginning of a cat-and-mouse game involving Iranian oil cargo, as well as a series of escalating attacks since 2019 that have been attributed to Iran.
The delay in offloading the Suez Rajan’s cargo has not only been a logistical issue but also a political concern for the Biden administration. It is estimated that the cargo is worth around $56 million, and a group of US senators from both Democratic and Republican parties recently urged the White House to provide an update on the situation. They suggested that the funds from the cargo could be allocated to the US Victims of State Sponsored Terrorism Fund, which compensates individuals affected by events such as the September 11 attacks and the 1979 Iran hostage crisis.
The US Treasury has stated that revenue from Iran’s oil smuggling supports the Quds Force, the Revolutionary Guard’s expeditionary unit operating across the Middle East. The transfer of the Suez Rajan’s cargo has been hailed by Claire Jungman, the chief of staff at United Against Nuclear Iran, who views it as a blow against terrorism that targets not only American citizens, but also global allies and partners.
As tensions between the US and Iran remain high, the offloading of the suspected Iranian crude oil from the American-owned oil tanker marks a significant development in a complex and multifaceted relationship that continues to impact global security and stability.
