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Iran detains Panama ship smuggling Iraq oil

TEHRAN: Iran's Revolutionary Guards intercepted a Panamanian-registered ship on Sunday allegedly carrying Iraqi oil in violation of the U.N. embargo against Baghdad, the Iranian news agency IRNA reported.

The ship first ignored repeated warnings from naval patrols in the Gulf and tried to escape to Iraq, where "it had loaded the cargo," the official news agency said.

But it was forced to stop after patrols pursued it and fired shots in the air and was now in the possession of the Revolutionary Guards' naval forces, it added.

The Guards intercepted a Honduran-registered ship last week carrying 500 tonnes of smuggled Iraqi fuel. The United states, which does not have diplomatic relations with Iran, welcomed the interception.

However, Shell said on Sunday the Russian tanker Akademik Pustovoyt seized in the Gulf by the U.S. Navy on Thursday on suspicion of smuggling Iraqi oil was carrying Iranian fuel oil purchased by Shell.

"It was Iranian fuel oil purchased by Shell and was being transported to the Gulf and then Singapore," Paddy Briggs, public affairs manager at Shell Companies Dubai, said.

Washington has repeatedly urged Tehran to crack down on smuggling of Iraqi oil, which it says enables the government of President Saddam Hussein to obtain hard currency outside the U.N-supervised oil-for-food programme.

Washington has also complained of Iraqi smuggling of oil products through Iranian waters, where a Multinational Interception Force, empowered to stop and search vessels in the Gulf suspected of carrying contraband, cannot follow them.-Reuters