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TEHRAN: In an unexpected reversal, Iran has opened its protected sea lanes to dozens of ships carrying shipments of Iraqi oil in violation of UN sanctions on Saddam Hussein's government, US officials said on Monday.
The Clinton administration considers the about-face alarming because oil is Hussein's only major source of independent income. US officials have estimated that unfettered access to Iranian waters could generate as much as one billion US dollars for his regime this year.
For a period of about two months, Iran had refused to allow ships carrying contraband Iraqi oil to sail along its coastline beyond the reach of UN and US ships deployed to enforce the embargo. But on Thursday, a wave of oil-laden ships moved into Iranian waters in what one senior US official likened to a "jailbreak."
"There was a huge backlog of ships full of smuggled oil that couldn't move into the gulf because Iran had kept them bottled up," said the official, who declined to be identified. "Then suddenly on Thursday they all set sail."
US officials said they are mystified by Iran's apparent policy shift, noting that Tehran had been lauded for the spirit of cooperation it displayed over the previous two months.
Besides the obvious boost to Iraq's finances, the administration is concerned about the diplomatic implications of Iran's turnabout.
Iran's clampdown on Iraqi oil shipments coincided with a US overture lifting sanctions on exports of Iranian carpets, pistachios and caviar. Washington had hoped that Tehran's move to curtail smuggling was a reciprocal gesture signalling interest in warmer relations after two decades of open hostility.
After the ships were detected in Iran's sea lanes on Thursday, the United States and other countries made urgent appeals to Tehran through diplomatic channels to stop the traffic. Those requests were confirmed on Monday by Iran's Foreign Ministry.
"They informed us that one or two ships had been seized, and asked us to seize the rest. We passed the information immediately to our military authorities, as it is our policy to seize all vessels carrying Iraqi oil," Iranian Deputy Foreign Minister Mohammad Javad Zarif told the Los Angeles Times.
Zarif said about two dozen ships were involved. American officials, however, said the figure is considerably higher.
The problem for Iran involves logistics, not political will, said Zarif, citing the more than 600 miles of Iranian coastline along the Persian Gulf.
"We told the United Nations that we would respond to the best of our ability, but that we also need international assistance," Zarif said. "This is a costly and difficult exercise considering the vast area involved."
According to US officials, the illegal oil shipments are passing through Iranian waters with no apparent impediments.
The oil-laden ships have flown under a number of flags, including those of Russia, Honduras, Belize, Panama and some Middle Eastern countries. As long as they remain within 12 miles of Iran's coastline, they are outside the jurisdiction of UN and US ships enforcing the embargo.
It is easier for ships to evade US and UN monitors once they get farther down the gulf.
Under UN sanctions, Iraq is allowed to export as much crude oil as it can produce, but only under the auspices of a UN- monitored "oil-for-food" programme. All of the funds generated by the approved shipments are distributed by the United Nations to purchase humanitarian supplies for Iraqi citizens.
But Hussein's government has generated a separate stream of illicit income for itself by selling smuggled oil and refined petroleum products to foreign buyers. US officials said such sales have been his only significant source of funds to spend on weapons programmes, luxury goods or other non-humanitarian purchases.
To avoid the UN blockade, sanctions-busting ships have loaded contraband oil in the Iraqi port of Abu Flus, then sailed through the narrow Shatt al Arab waterway to the gulf, according to US officials.
Before entering the gulf, the ships passed through a checkpoint run by Iran's Revolutionary Guards, who charged a fee based on the quantity of oil the ships were carrying, US officials contend. That practice was halted two months ago when Iran decided to shut down the coastal smuggling route, but appears to have resumed, US officials said. US officials have said they are not certain whether the smuggling has been condoned by officials in Tehran, or whether it has been a rogue operation. It is unclear whether the Revolution-ary Guards are within the full control of President Mohammad Khatami, who under Iran's Isla-mic government is not commander-in-chief.-Dawn/LAT-WP News Service (c) Los Angeles Times
Thanks for this very interesting post. It suggests some interesting geopolitical oil connections that dispute the Stratfor.com point of view on Iran's oil politics.
3 Posted on 11/18/2001 10:54:48 PST by snopercod
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.
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