NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

Lawmakers urge Biden to resolve offloading delay of seized Iran oil tanker

Published 08/16/2023, 08:08 AM
Updated 08/16/2023, 12:59 PM
© Reuters. FILE PHOTO: The Houston Ship Channel and adjacent refineries, part of the Port of Houston, are seen in Houston, Texas, U.S., May 5, 2019.  REUTERS/Loren Elliott//File Photo
CL
-

WASHINGTON (Reuters) - U.S. lawmakers from both political parties have urged President Joe Biden and members of his administration to resolve a months-long delay in the transfer of a cargo of oil from a seized Iranian tanker off Texas.

The Suez Rajan has been stuck near Galveston about 50 miles (80 km) from Houston since May 30, as shipping companies fear any vessel unloading it would lead other oil buyers to shun their ships on future voyages. The U.S. seized the tanker in a sanctions enforcement operation.

The delay in discharging the cargo is also partly out of fear of repercussions from Iran. A senior commander of Iran's Revolutionary Guards' navy said last month Iran would retaliate against any oil company unloading Iranian oil from a seized tanker.

Senators Joni Ernst, a Republican, and Richard Blumenthal, a Democrat, and other lawmakers in the Senate and U.S. House said in the letter to Biden and senior administration officials that enforcement of petroleum sanctions will become irrelevant if American citizens and companies involved constantly live in fear of Iranian retaliation.

"It is imperative that the Administration make clear that Iran and designated Foreign Terrorist Organizations cannot prevent our government from carrying out legitimate law enforcement operations," the lawmakers said in the letter sent late on Tuesday and seen by Reuters.

They asked the administration for a briefing on the progress of the transfer of the seized oil from the Suez Rajan to U.S. custody.

The White House did not immediately respond to a request for comment.

© Reuters. FILE PHOTO: The Houston Ship Channel and adjacent refineries, part of the Port of Houston, are seen in Houston, Texas, U.S., May 5, 2019.  REUTERS/Loren Elliott//File Photo

The saga of the tanker is occurring as Washington and Tehran seek a deal to free five detained U.S. citizens in exchange for releasing $6 billion in Iranian funds frozen in South Korea. A deal would remove a major irritant between Washington and Tehran, which are at odds on 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 800,000 barrel tanker to be $56 million. U.S. seizures of Iranian oil contribute money to the U.S. Victims of State Sponsored Terrorism Fund, which compensates victims of attacks. A fund official has determined there are insufficient assets for a round of payments next year to the nearly 16,000 Americans.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.