Iran Seizes Aging Product Tanker for Fuel Smuggling
The Islamic Revolutionary Guard Corps has seized a small product tanker in the Persian Gulf and arrested the crew, according to UK security agency Ambrey.
The aging coastal tanker Betelgeuse was captured by IRGC personnel at a position about 60 nautical miles off the coast of Bushehr, according to Ambrey. It had just taken on a cargo of gas oil at Khor al Zubair, Iraq, and was bound for the UAE.
The details of the seizure are consistent with past IRGC actions related to fuel smuggling, which is a rampant problem in the Islamic republic. Iran heavily subsidizes gasoline and diesel for public sale, making the retail price within Iran far lower than the wholesale price abroad. Illicit actors in Iran operate a lucrative, prolific trade in discounted fuel by buying it locally at below market value, then exporting it without a license and selling it at full price in neighboring countries.
The IRGC confirmed in a statement that it believes that Betelgeuse was "systematically engaged in fuel smuggling" and was captured in accordance with a court order.
Iran periodically seizes Western tankers for use as leverage in political negotiations, but this arrest appears to be a routine law-enforcement matter, Ambrey suggested - despite considerable speculation to the contrary on social media.