South Korean tanker seized by Iran in Strait of Hormuz

The South Korean-flagged tanker after it was seized by Iran's IRGC navy in the Strait of Hormuz. (AFP/Tasnim)
The South Korean-flagged tanker after it was seized by Iran's IRGC navy in the Strait of Hormuz. (AFP/Tasnim)
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Updated 05 January 2021

South Korean tanker seized by Iran in Strait of Hormuz

South Korean tanker seized by Iran in Strait of Hormuz
  • Expert: ‘This is a classic playbook activity’ by Tehran
  • Reason given for detaining vessel ‘complete nonsense’

LONDON: A South Korean-flagged chemical tanker has been seized in the Strait of Hormuz by Iranian forces, the latest in a string of maritime incidents raising tensions in one of the world’s most important shipping lanes.

The South Korean ship Hankuk Chemi diverted course northwards into Iranian territorial waters while en-route to Fujairah, in the UAE, from the Saudi city of Al-Jubail on Monday.

Seoul confirmed that the vessel, which has a crew of 11 from Myanmar, five South Koreans, two Indonesians and two Vietnamese, was detained by Iran’s Islamic Revolutionary Guard Corps (IRGC).




The tanker was seized by iranian forces ion the Strait of Hormuz. (Reuters)

A statement from the South Korean foreign ministry requested “the early release of the ship.” 

The country’s defence ministry said an anti-piracy unit has been dispatched to the scene in response to the seizure, and that it will cooperate with a multinational anti-piracy naval force operating in nearby waters.

Relations between Tehran and Seoul, an ally of the US, have deteriorated in recent years, in part because of a dispute over Iranian oil money allegedly frozen in South Korean banks. 

Iranian media outlets claimed the IRGC navy seized the ship for polluting the Gulf with chemicals. The reports said the tanker was being held at Bandar Abbas port in Iran. 

The US State Department accused Iran of threatening "navigational rights and freedoms" and called on Tehran to immediately release the tanker. 




The South Korean-flagged tanker after it was seized by Iran's IRGC navy in the Strait of Hormuz. (AFP/Tasnim)

Munro Anderson, a partner at maritime security firm Dryad Global, told Arab News that the incident is indicative of wider Iranian regional strategy and foreign policy.

“The vessel was detained for what Iran describes as oil pollution, which is complete nonsense,” he said, adding that the ship’s detention is undoubtedly linked to the feud over the frozen oil money.

Incidents such as this indicate “that Iran will seek to leverage all sorts of attributable and non-attributable actions against those who it perceives to be working against its interests,” he said.

 

 

Anderson added that broadly speaking, shipping safety in the region is not in decline, but that ships and sailors from states involved in disputes with Iran are at heightened risk of being targeted as part of Tehran’s strategy in the Arabian Gulf.

The detention of ships “is a classic Iranian and IRGC playbook activity, and it shows that Iran has the capacity and the intent to exercise its influence within the region to achieve its wider foreign policy goals,” he said.

Anderson added that this incident is the latest in a string of actions blamed on Iran, including the recent discovery of limpet mines on two ships in the Arabian Gulf and off the coast of Iraq. The Iranians “have shown that this is how they operate,” he said.

Tensions in the Arabian Gulf between the US and Iran are once again approaching boiling point. Sunday saw the one-year anniversary of the US killing of IRGC Quds Force commander Qassem Soleimani. On Monday, Tehran announced it would resume enriching uranium to 20 percent, far exceeding the level of purity that is allowed under Tehran’s 2015 nuclear pact with six major powers.

On Monday the US announced that its aircraft carrier the USS Nimitz would remain in the Gulf due to “recent threats” by Iran, and a US official warned that “no one should doubt the resolve of the United States of America.”

Despite the USS Nimitz’s presence, Anderson warned that “Iran will continue to use all sorts of unconventional and unscrupulous means to further its foreign policy agenda,” and the Arabian Gulf “is a natural area for it to do this,” he added.


Crypto-miners take down Iran electric grids, prompting crackdown

Cryptocurrency mining is a process in which specialized computers complete progressively more difficult calculations to verify transactions and thereby produce cryptocurrencies, the most popular of which is Bitcoin. (Shutterstock/File Photo)
Cryptocurrency mining is a process in which specialized computers complete progressively more difficult calculations to verify transactions and thereby produce cryptocurrencies, the most popular of which is Bitcoin. (Shutterstock/File Photo)
Updated 59 min 56 sec ago

Crypto-miners take down Iran electric grids, prompting crackdown

Cryptocurrency mining is a process in which specialized computers complete progressively more difficult calculations to verify transactions and thereby produce cryptocurrencies, the most popular of which is Bitcoin. (Shutterstock/File Photo)
  • Multiple cities have experienced blackouts and a halt to industrial work in recent weeks
  • Tehran offering $4,750 reward for informants who expose illegal cryptocurrency mining operations

LONDON: Iran has ordered a crackdown on cryptocurrency miners after blackouts in major cities were attributed to the excess toll the activity takes on the energy grid.

Parts of Tehran, as well as Mashhad and Tabriz, have experienced repeated blackouts in recent weeks, temporarily halting production lines and plunging the cities into darkness.

State electricity company Tavanir said it had temporarily halted all known crypto-mining operations, including a Chinese-Iranian mine in Rafsanjan that is reported to have been consuming 175 megawatt hours — enough electricity to power an average Western home for 17 years.

Cryptocurrency mining is a process in which specialized computers complete progressively more difficult calculations to verify transactions and thereby produce cryptocurrencies, the most popular of which is Bitcoin.

The process is extremely energy intensive, meaning that cryptocurrency mining is most profitable in locations with cheap energy.

Because of significant state subsidies and excess fuel reserves held by Iran due to sanctions, oil-fueled electricity is very cheap in the country — less than 1 cent per kilowatt hour.

This has massively fueled production of cryptocurrencies in Iran, to the extent that in 2020, the country was responsible for 8 percent of all the world’s Bitcoin production.

The effect of the crypto-mining on Iran’s grids has become such a problem that the government is now offering a $4,750 reward for tips on illegal crypto-mining locations.

At $35,000 each, the price of Bitcoin has reached record levels in recent weeks, making mining of the currency particularly attractive in a place with few economic opportunities such as Iran.

The appeal of Bitcoin and other cryptocurrencies is also relevant for states and groups that operate on the fringes of the global economy, such as Iran, Venezuela and North Korea, as well as terrorist groups.

Bitcoins can be traded outside the traditional banking system, allowing Iran to circumvent economic sanctions on its financial sectors, and terrorist groups such as Hezbollah and Daesh to trade on the black market anonymously.

In 2019, Iran’s President Hassan Rouhani announced that his country would launch its own cryptocurrency to circumvent US sanctions, but little else is known about the project.

Despite the difficulty in tracing cryptocurrency transactions, in 2018 the US sanctioned two Iranians who had been converting cryptocurrency into Iranian rials on behalf of hackers who had targeted American corporations, hospitals, universities and government agencies.