<article><p class="lead">A cargo of up to 2mn bl of confiscated Iranian crude has been sitting idle off the Texas coast near near Houston since 14 February, awaiting its disposition before a federal judge.</p><p>Earlier this month the US Department of Justice asked a US court to <a href="https://direct.argusmedia.com/newsandanalysis/article/2183429">authorize forfeiture</a> of the Iranian oil cargo aboard the Liberia-flagged <i>Achilleas</i>, a very large crude carrier (VLCC). It was the first such action under President Joe Biden's administration. </p><p>The cargo aboard the <i>Achilleas</i> was transferred from ship to ship three times since being loaded into the Iran-flagged <i>Sarak</i> and <i>Sonia I</i> at the Sirri Island oil terminal in Iran in May 2020, according to US court documents.</p><p>Washington claims jurisdiction over the cargo by stating that the ultimate beneficiary of all Iranian oil exports is Iran's Islamic Revolutionary Guard Corps (IRGC) that the US labels a "terrorist organization."</p><p>A 2mn bl shipment of Iranian Light crude would be worth an estimated $126.7mn based on its current price at a $2.67/bl discount to North Sea Dated, or $62.39/bl on an outright basis. That level would amount to an estimated $63.17/bl after transportation costs to the US Gulf coast, or 26¢/bl higher than the level at which competing US light sweet West Texas Intermediate (WTI) was priced in the regional waterborne market yesterday. </p><p>The transfer of the cargo to the US for sale is the second example of the US successfully seizing an Iranian cargo. </p><p>Last year, the Justice Department sold 1.16mn bl of Iranian-sourced fuel confiscated in August 2020 aboard four tankers that were allegedly being delivered to Venezuela.</p><p>About 250,000 bl of that cargo ended up <a href="https://direct.argusmedia.com/newsandanalysis/article/2149690">discharging</a> in October 2020 in New Jersey. </p><p class="bylines">By Liz Ramanand</p></article>
