Iraqi Oil Minister Hayan Abdel-Ghani disclosed that several Iranian oil tankers, which were recently seized by US forces in the Gulf region, were found to be operating under false pretenses.
The tankers were illicitly using forged Iraqi documents in an attempt to conceal their true origin and circumvent international sanctions against Iran’s oil trade, according to a Reuters report.
This revelation highlights the ongoing tensions and complexities surrounding oil trade in the Gulf region, as well as the challenges faced by authorities in enforcing sanctions and preventing illicit activities.
No communication from the US
The incident also highlighted the potential for fraudulent practices in the maritime industry and the importance of maintaining strict control and verification measures to ensure compliance with international regulations.
Abdel-Ghani was questioned whether he had received any communication from the United States regarding potential sanctions against state oil marketer SOMO due to violations of Iranian sanctions.
“We received some verbal inquiries about oil tankers being detained in the Gulf by US naval forces carrying Iraqi shipping manifests,” the oil minister said on state television late on Sunday.
He further insisted that there were no formal communications.
It turned out that these tankers were Iranian…and were using forged Iraqi documents. We explained this to the relevant authorities with complete transparency and they also confirmed this.
Iraq is crucial to Iran’s economy, especially because of the sanctions Iran faces.
However, Iraq is hesitant to be caught in the middle of US policies against Iran, given its partnership with both the countries.
Smuggling network
A sophisticated fuel oil smuggling network, which some experts believe generates at least $1 billion a year for Iran and its proxies, has flourished in Iraq in the past few years.
Reuters had reported in December that the network has thrived by using forged documentation.
Abdel-Ghani stated that SOMO exclusively sells crude to companies that own refineries and does not supply trading firms, adding that several traders were behind the scheme.
“SOMO operates with full transparency and has committed no wrongdoing in the oil export process,” he said.
Tightening screws
Meanwhile, the Trump administration’s policy of “maximum pressure” on Iran was a multifaceted approach aimed at severely crippling Iran’s economic and political influence, primarily through economic sanctions and diplomatic isolation.
The overarching goal was to force Iran to renegotiate the terms of the Joint Comprehensive Plan of Action (JCPOA), also known as the Iran Nuclear Deal, which the Trump administration viewed as insufficient to prevent Iran from developing nuclear weapons.
The policy’s primary tool was economic sanctions, which targeted Iran’s critical industries, including oil, banking, and shipping.
By severely limiting Iran’s ability to export oil, its main source of revenue, the administration sought to cripple the Iranian economy and create domestic pressure on the Iranian government.
Barbara Lambrecht, commodity analyst at Commerzbank AG, said:
The US could also tighten sanctions further in light of Iran’s rejection of new nuclear talks.
Furthermore last week, a Chinese refinery was also placed on the sanctions list by the US for the first time, which could deter other customers from buying Iranian oil in the future.
The sanctions aimed to deter foreign companies and countries from doing business with Iran, further isolating the country from the global economy.
Diplomatic measures
In addition to economic sanctions, the Trump administration also employed diplomatic pressure to isolate Iran on the international stage.
This included withdrawing from the JCPOA, designating the Islamic Revolutionary Guard Corps (IRGC) as a foreign terrorist organisation, and rallying allies to support the maximum pressure campaign.
The “maximum pressure” policy had significant consequences for Iran, including a sharp decline in its economy, rising inflation, and increased social unrest.
However, it also faced criticism for its potential to exacerbate humanitarian suffering in Iran and for its perceived ineffectiveness in achieving its stated goals.
While the policy did put significant strain on the Iranian economy, it did not lead to a renegotiation of the JCPOA or a halt to Iran’s nuclear program.
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