Merchant vessel detentions and Iran’s policy goals

The tanker ADVANTAGE SWEET being boarded by Iranian forces. Source: Iran Navy

The tanker ADVANTAGE SWEET being boarded by Iranian forces. Source: Iran Navy

13 June 2023

The seizure and detention of three tanker vessels by Iran in separate incidents in late April and early May 2023 has once again thrown the spotlight onto this particular threat in the Gulf of Oman and Persian Gulf area.

By Dr. Guy-Wilson Roberts, Head of Intelligence Analysis

Vessel detentions have been used by Iran for broadly three policy goals. Each of these goals is influenced by regional factors, particularly the international sanctions under which Iran’s oil exports take place.

Firstly, Iran has an active programme of preventing fuel smuggling. Smugglers use small local tankers and similar craft to take advantage of regional price differences for refined oil products. Numerous vessels have been intercepted and detained for fuel smuggling, yet these cases are often not widely reported. The Panama-flagged and UAE-owned product tanker PURITY was detained off Asaluyeh on 7 May 2023. According to Iranian media, the operation was a result of a court order. “The PURITY had been illegally leased to a foreigner by falsifying documents since 2018 and its Iranian owners were deprived of the benefits of the oil tanker,” a spokesperson for the justice department was reported saying. The spokesperson also stated that “the foreign corporation employed the vessel for fuel trafficking.” Despite Iran’s claims, it is far from clear if this was the situation.

Secondly, vessels might be seized to settle disputes between parties that are engaged in sanctioned trading of Iran’s crude oil. The US has penalised various companies engaging in this trading which has encouraged clandestine behaviour. These cases affect only ships trading in Iranian crude. An example was the tanker WINSOME, detained in July 2021 and held indefinitely in a dispute over ownership or Iran securing its cargo against a possible US intervention. This might also be the case for the Panama-flagged and Greek-owned crude oil tanker NIOVI that was seized in the Strait of Hormuz on 3 May. The NIOVI had allegedly been carrying sanctioned crude and is part of a legal dispute over a cargo that was discharged in China, currently being litigated in the UK.

Thirdly, vessels might be seized in a tit-for-tat response by Iran for actions by the US or others to enforce sanctions. These detentions are typically high profile, as they affect internationally-flagged vessels trading in the Persian Gulf that are not directly associated with Iran. Previous cases have included the STENA IMPERO, the HANKUK CHEMI, as well as the DELTA POSEIDON and the PRUDENT WARRIOR. Overall, Iran likely targets vessels which are linked through flag or ownership to a specific dispute, aimed at obtaining leverage to resolve the respective dispute in its favour.

The Marshall Islands-flagged crude oil tanker ADVANTAGE SWEET – managed and owned by a Turkish and Chinese company respectively – was boarded by Iranian forces in the Gulf of Oman on 27 April. Media reports state that the vessel was bound for Houston with a cargo from Kuwait. It was very likely a response for the apparent seizure of the crude oil tanker SUEZ RAJAN by the US. The US targeted the SUEZ RAJAN with a court order and the vessel was redirected from Asia to the US. The detention of the ADVANTAGE SWEET is therefore likely to be an attempt to hold vessel and cargo as a bargaining chip over its own seized crude oil cargo.

By and large, Iran can use its naval capabilities to seize and detain vessels in the area, despite the presence of international naval forces. In previous cases, Iran has used such vessels successfully as bargaining chips and is almost always able to secure concessions in its favour. Similar operations are therefore likely to continue, and the vessels held currently might be detained for months before their situations are resolved.

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