U.S. Navy says mine fragments suggest Iran behind Gulf tanker attack

An Emirati official watches members of the U.S. Navy Fifth Fleet as they prepare to escort journalists to the Japanese-owned Kokuka Courageous tanker at a U.S. NAVCENT facility near the port of Fujairah, United Arab Emirates June 19, 2019. REUTERS/Christopher Pike

By Aziz El Yaakoubi

FUJAIRAH, United Arab Emirates (Reuters) – The United States sought on Wednesday to bolster its case for isolating Iran over its nuclear and regional activities by showing limpet mine fragments it said came from a damaged oil tanker and saying the ordinance looked Iranian in origin.

The Islamic Republic has denied involvement in explosive strikes on two tankers in the Gulf of Oman last week and four tankers off the United Arab Emirates on May 12, both near the Strait of Hormuz, a major conduit for global oil supplies.

But the incidents have fueled tensions that broke out with the U.S. pullout last year from world powers’ 2015 nuclear accord with Iran, followed by fresh U.S. sanctions to stifle Tehran’s vital oil trade, and a retaliatory Iranian threat this week to resume uranium enrichment in breach of the deal.

France and Germany said on Wednesday they would crank up efforts to halt any spiral toward conflict with Iran, but time was running out and the risk of war could not be ruled out.

Iran’s signal of preparedness to stockpile enriched uranium beyond the deal’s limit, and refine uranium to a fissile purity higher than deemed necessary for civilian uses, prompted U.S. President Donald Trump to warn on Tuesday he was ready to take military action to stop Tehran developing a nuclear bomb.

Iran denies it has such intentions.

But Trump also left open whether he would support the use of force to protect Gulf oil supplies Washington fears might be put in jeopardy by Iran in the brewing confrontation.

“We want to unify our efforts so that there is a de-escalation process that starts,” French Foreign Minister Jean-Yves Le Drian told reporters in Paris.

“There is still time and we hope all the actors show more calm. There is still time, but only a little time.”

Iran, where hardline foes of detente with the West have been strengthened by Trump’s pressure campaign, said on Wednesday it would give European powers no more time beyond July 8 to save the nuclear deal by shielding its economy from U.S. sanctions.

President Hassan Rouhani said Iran’s actions were the “minimum” Tehran could do one year after the United States withdrew from the deal, but said its steps were reversible “if they return to their commitments”.

In another incident likely to aggravate the stand-off, a rocket crashed onto a site in southern Iraq used by foreign oil companies on Wednesday, including U.S. energy giant ExxonMobil, wounding three people.

There was no immediate claim of responsibility for the attack near the southern Iraqi city of Basra, not far from the Iranian border – the fourth time in a week that rockets have struck near U.S. installations.

An Iraqi security source said it appeared that Iran-backed groups in southern Iraq were behind the Basra incident.

U.S. DISPLAYS MINE FRAGMENTS, MAGNET

In the United Arab Emirates port of Fujairah on Wednesday, the U.S. Navy displayed pieces of limpet mines and a magnet it said its personnel extracted from one of two oil tankers attacked in the Gulf of Oman last week.

The U.S. military earlier released images it said showed Iranian Revolutionary Guards removing an unexploded mine from Japanese-owned tanker Kokuka Courageous, which was hit by blasts along with Norwegian-owned Front Altair tanker on June 13.

“The limpet mine that was used in the attack is distinguishable and also strikingly bearing a resemblance to Iranian mines that have already been publicly displayed in Iranian military parades,” Sean Kido, commanding officer of an explosive ordnance dive and salvage task group in the U.S. Naval Forces Central Command (NAVCENT), told reporters.

Small fragments said to have been removed from the Kokuka Courageous were on display alongside a magnet purportedly left by the Revolutionary Guard squad allegedly captured on video.

The Japanese company that owns the Kokuka Courageous had said its ship was damaged by two “flying objects”, but NAVCENT dismissed this.

“The damage at the blast hole is consistent with a limpet mine attack, it is not consistent with an external flying object striking the ship,” Kido said, adding that nail holes visible in the hull indicated how the mine was attached to the ship’s hull.

The location of the mine above the ship’s waterline indicated the intention was not to sink the vessel, he said.

Two Western security sources told Reuters this week the attacks seemed calibrated to inflict only limited damage and avoid injury to show Iran could sow chaos if it wanted to, possibly to persuade Washington and other foes to back off rather than trigger conflict.

Kido also said NAVCENT had collected biometric information including fingerprints from the ship’s hull that would help in crafting a criminal case against the assailants.

The United States and Saudi Arabia have pointed fingers at Iran for all the tanker attacks, but several European nations have said more evidence is needed.

“The dynamics of the two attacks are not clear, and the video that the U.S. said demonstrated Iran’s role was also not clear,” a Western diplomat in the Gulf told Reuters.

(Additional reporting by Abdelhadi al-Ramahi, Sylvia Westall and Davide Barbuscia in Dubai, Aref Mohammed and Ahmed Rasheed in Iraq, Bozorgmehr Sharafedin in London, John Irish and Michel Rose in Paris, Joseph Nasr in Berlin; Writing by Mark Heinrich; Editing by Andrew Cawthorne)

Saudi Arabia says oil facilities outside Riyadh attacked

A technical staff is seen at the Port of Fujairah, United Arab Emirates, May 13, 2019. REUTERS/Satish Kumar

By Stephen Kalin and Rania El Gamal

RIYADH/DUBAI (Reuters) – Saudi Arabia said armed drones had struck two oil pumping stations in the kingdom on Tuesday in what it called a “cowardly” act of terrorism two days after Saudi oil tankers were sabotaged off the coast of the United Arab Emirates.

The energy minister of the world’s largest oil exporter said the attack caused a fire, now contained, and minor damage at one pump station, but did not disrupt oil production or exports of crude and petroleum products.

Oil prices spiked on news of the attack on the stations, more than 200 miles (320 km) west of the capital Riyadh. Brent crude futures rose 1.38% to trade at $71.20 by 1114 GMT.

Energy Minister Khalid al-Falih, in comments run by state media, said the drone attack and Sunday’s sabotage of four vessels, including two Saudi tankers, off Fujairah emirate, a major bunkering hub, threatened global oil supplies.

“These attacks prove again that it is important for us to face terrorist entities, including the Houthi militias in Yemen that are backed by Iran,” Falih said in an English-language statement issued by his ministry.

Houthi-run Masirah TV earlier said the group had launched drone attacks on “vital” Saudi installations in response to “continued aggression and blockade” on Yemen.

A Saudi-led coalition has been battling the Houthis for four years in Yemen to try to restore the internationally recognized government, in a conflict widely seen as a proxy war between Saudi Arabia and Iran.

The Houthis have repeatedly launched drone and missile attacks on Saudi cities, but two Saudi sources told Reuters this was the first time an Aramco facility was hit by drones.

State-run Aramco said it had temporarily shut down the East-West pipeline, known as Petroline, to evaluate its condition. The pipeline mainly transports crude from the kingdom’s eastern fields to Yanbu port, which lies north of Bab al-Mandeb.

The attacks occur amid a war of words between Washington and Tehran over sanctions and U.S. military presence in the region.

The Saudi stock index, which suffered two days of heavy losses, opened 1.5% higher but was trading down 0.3% at 1200 GMT. A Saudi-based banker told Reuters that state funds were supporting local stocks to limit the downside.

IRAN IN FOCUS

The UAE has not revealed details about the nature of the attack on ships near Fujairah port, which lies just outside the Strait of Hormuz, or blamed any party or country.

Iran was a prime suspect in the sabotage on Sunday although Washington had no conclusive proof, a U.S. official familiar with American intelligence said on Monday.

Iran has denied involvement and described the attack on the four commercial vessels as “worrisome and dreadful”. It has called for an investigation.

The U.S. ambassador to Saudi Arabia said Washington should take what he called “reasonable responses short of war” after it had determined who was behind the attacks near Fujairah.

“We need to do a thorough investigation to understand what happened, why it happened, and then come up with reasonable responses short of war,” Ambassador John Abizaid told reporters in the Saudi capital Riyadh in remarks published on Tuesday.

“It’s not in (Iran’s) interest, it’s not in our interest, it’s not in Saudi Arabia’s interest to have a conflict.”

The U.S. embassy in the UAE advised its citizens to maintain a high level of vigilance on heightened tensions in the region.

Washington has increased sanctions on Tehran, saying it wants to reduce Iranian oil exports to zero, after quitting the 2015 nuclear pact between Iran and global powers last year.

The U.S. Maritime Administration said last week that Iran could target U.S. commercial ships including oil tankers sailing through Middle East waterways. Tehran has called the U.S. military presence “a target” rather than a threat.

A fifth of global oil consumption passes through the Strait of Hormuz from Middle East crude producers to markets in Asia, Europe, North America and beyond. The narrow waterway separates Iran from the Arabian Peninsula.

Iran’s Revolutionary Guards threatened last month to close the chokepoint if Tehran was barred from using it.

U.S. President Donald Trump wants to force Tehran to agree a broader arms control accord and has sent an aircraft carrier and B-52 bombers to the Gulf in a show of force against what U.S. officials have said are threats to U.S. troops in the region.

(Additional reporting by Alexander Cornwell, Asma Alsharif, Aziz El Yaakoubi and Davide Barbuscia in Dubai; Writing by Stephen Kalin and Ghaida Ghantous; Editing by Angus MacSwan, William Maclean)

Russian tankers fueled North Korea via transfers at sea

A North Korean flag flies on a mast at the Permanent Mission of North Korea in Geneva October 2, 2014.

By Guy Faulconbridge, Jonathan Saul and Polina Nikolskaya

LONDON/MOSCOW (Reuters) – Russian tankers have supplied fuel to North Korea on at least three occasions in recent months by transferring cargoes at sea, according to two senior Western European security sources, providing an economic lifeline to the secretive Communist state.

The sales of oil or oil products from Russia, the world’s second biggest oil exporter and a veto-wielding member of the United Nations Security Council, breach U.N. sanctions, the security sources said.

The transfers in October and November indicate that smuggling from Russia to North Korea has evolved to loading cargoes at sea since Reuters reported in September that North Korean ships were sailing directly from Russia to their homeland.

“The Russian vessels made transfers at sea to the North Koreans,” the first security source, who spoke on condition of anonymity, told Reuters. The source said the transfers of oil or oil products took place on several occasions and were a breach of sanctions.

A second source, who independently confirmed the existence of the Russian ship-to-ship fuel trade with North Korea, said there was no evidence of Russian state involvement in the latest transfers.

“There is no evidence that this is backed by the Russian state but these Russian vessels are giving a lifeline to the North Koreans,” the second European security source said.

In comments carried by Russia’s RIA Novosti state news agency on Saturday, the Russian Foreign Ministry said the country was observing sanctions against North Korea.

The two security sources cited naval intelligence and satellite imagery of the vessels operating out of Russian Far Eastern ports on the Pacific but declined to disclose further details to Reuters, saying it was classified.

The Russian Customs Service declined to comment when asked on Wednesday if Russian ships had supplied fuel to North Korean vessels. The owner of one ship accused of smuggling oil to North Korea denied any such activity.

SATELLITE DATA

The U.S. State Department, in a statement, called on Russia and other U.N. members to “strictly implement” sanctions on North Korea and to work “more closely together to shut down U.N.-prohibited activities, including ship-to-ship transfers of refined petroleum and the transport of coal from North Korea”.

The latest report came as China, responding on Friday to criticism from U.S. President Donald Trump, denied it had illicitly shipped oil products to North Korea.

North Korea relies on imported fuel to keep its struggling economy functioning. It also requires oil for its intercontinental ballistic missile and nuclear program that the United States says threatens the peace in Asia.

“The vessels are smuggling Russian fuel from Russian Far Eastern ports to North Korea,” said the first security source, who spoke on condition of anonymity.

Reuters was unable to independently verify that the vessels had transferred fuel to North Korean vessels, whether the Russian state knew about the sales or how many Russian vessels were involved in the transfers. It was also unclear how much fuel may have been smuggled.

Ship satellite positioning data consulted by Reuters and available on Reuters Eikon shows unusual movements by some of the Russian vessels named by the security sources including switching off the transponders which give a precise location.

The security sources said the Russian-flagged tanker Vityaz was one vessel that had transferred fuel to North Korean vessels.

The Vityaz left the port of Slavyanka near Vladivostok in Russia on Oct. 15 with 1,600 tonnes of oil, according to Russian port control documents.

Documents submitted by the vessel’s agent to the Russian State Port Control authority showed its destination as a fishing fleet in the Japan Sea. Shipping data showed the vessel switched off its transponder for a few days as it sailed into open waters.

According to the European security sources, the Vityaz conducted a ship-to-ship transfer with the North Korean Flagged Sam Ma 2 tanker in open seas during October.

Reuters could not independently verify the transfer as ship tracking data showed that the Sam Ma 2 had turned off its transponder from the start of August.

The owner of the Russian vessel denied any contact with North Korean vessels but also said it was unaware that the vessel was fuelling fishing boats.

OIL PRODUCTS

Yaroslav Guk, deputy director of the tanker’s owner, Vladivostok-based Alisa Ltd, said the vessel had no contacts with North Korean vessels.

“Absolutely no, this is very dangerous,” Guk told Reuters by telephone. “It would be complete madness.”

When contacted a second time, Guk said the vessel did not have any contacts with North Korean ships and that he would not answer further questions.

An official at East Coast Ltd, the vessel’s transport agent, declined to comment.

Two other Russian flagged tankers made similar journeys between the middle of October and November, leaving from the ports of Slavyanka and Nakhodka into open seas where they switched off their transponders, shipping data showed.

In September, Reuters reported that at least eight North Korean ships that left Russia loaded with fuel this year headed for their homeland despite declaring other destinations, a ploy that U.S. officials say is often used to undermine sanctions.

A Russian shipping source with knowledge of Far Eastern marine practices said North Korean vessels had stopped loading fuel in Russia’s Far Eastern ports but that fuel is delivered at sea by tankers using ship-to-ship transfers, or even by fishing vessels.

China on Friday denied reports it had been illicitly selling oil products to North Korea in violation of U.N. sanctions, after U.S. President Donald Trump said he was unhappy that China had allowed oil to reach the isolated nation.

China’s denial came a day after it blocked a U.S. effort at the United Nations to blacklist six ships Washington believes had engaged in illicit trade with North Korea, a U.N. Security Council diplomat said.

According to documents seen by Reuters this month, the United States had proposed that the U.N. Security Council blacklist 10 ships for illicit trade with North Korea.

It accused the vessels of “conducting illegal ship-to-ship transfers of refined petroleum products to North Korean vessels or illegally transporting North Korean coal to other countries for exports.”

Three North Korean ships among the 10 were blacklisted, along with a Panama-registered vessel.

(Additional reporting by David Brunnstrom in Washington, and Gabrielle Tetrault-Farber in Moscow; Editing by Giles Elgood, Leslie Adler and Alison Williams)