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What is the Fate of the Iranian Oil Tanker Held Off Texas?

What is the Fate of the Iranian Oil Tanker Held Off Texas?

U.S. lawmakers from both the Republican and Democratic parties have urged President Joe Biden and his administration to find a solution to the ongoing delay in unloading oil from an Iranian tanker held off Texas. The tanker, Suez Rajan, has been anchored near Galveston, about 80 kilometers from Houston, since May 30, as shipping companies fear that oil buyers will avoid using their ships for future voyages if any company unloads the vessel's cargo. The United States seized the tanker as part of its sanctions enforcement.

Also contributing to the unloading delay is the fear of repercussions from Iran. A senior official in the Iranian Revolutionary Guard last month stated that Iran would respond to any oil company that unloads Iranian oil from the seized tanker. Republican Senator Joni Ernst, Democratic Senator Richard Blumenthal, and other lawmakers in both the Senate and House wrote to Biden and senior administration officials, stating that enforcing oil sanctions would become meaningless if American citizens and related companies remain fearful of Iranian retaliation.

In the letter, sent late Tuesday and reviewed by Reuters, lawmakers stated, “The administration must make it clear that Iran and foreign terrorist organizations cannot prevent our government from executing legitimate law enforcement actions.” They requested the administration to provide an update on the progress made in transferring the oil seized from Suez Rajan into U.S. custody.

The White House did not respond to a request for comment. According to lawmakers' estimates, the value of the oil aboard the tanker, which carries 800,000 barrels, is $56 million. The funds generated from the U.S. seizure of Iranian oil are being contributed to a fund for victims of terrorism that provides compensation to victims of attacks. A fund official stated that there are insufficient assets to pay out the next round of payments next year to 16,000 Americans.

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