Iranian fuel seized by the US in July
Back in July, the US seized an estimated 11 million barrels of fuel from Iran that was on four privately owned tankers that were bound for Venezuela. The seized fuel was transferred to two tankers the Maersk Progress that has just unloaded its fuel while the other the Euroforce has been off the coast of Houston Texas since September 9.
How US was able to seize shipments is unclear
US sanctions on Venezuela target any maritime trade but the sanctions should apply only to US ships. However, the US can exert international pressure such as cutting off business with firms that trade with sanctioned. The US could also use its influence to prevent a ship owner with loss of registration or insurance if they did not transfer their cargo to the other ships.
A recent Reuters article reports: “Several companies that certify vessels are seaworthy and ship insurers have withdrawn services to tankers involved in the Venezuelan oil trade as the United States targets the maritime industry to tighten sanctions on the Latin American country.”
The company Sea Trader that leased one of the ships in court documents said the cargo was destined for Aruba or Curacao and was not bound for Venezuela.
Iran and Venezuela are natural trading partners
Both countries suffer from severe US sanction and so are natural trading partners. Venezuela has its own refining capacity and oil but its oil is not of sufficient purity for its refineries and it is difficult to import oil for its refineries given US sanctions. The Venezuelan fuel will help alleviate a shortage of fuel. Iran has plenty of fuel to sell since the US sanctions make such sales difficult. The two countries continue to trade and skirt US sanctions.
Some Iranian shipments have arrived in Venezuela
Earlier, a convoy of three Iranian tankers had arrived safely in Venezuelan territorial waters, and Iran confirmed it had already been paid for in gold bars by Venezuela avoiding US dominated international financial payment systems.
