Greek Court Overrules Decision to Comply With US Request to Seize Cargo of Iranian Oil Taker

A Greek Appeals court overruled an earlier ruling that had prompted impounding of Iranian tanker Lana's oil cargo in favour of the US, Iran's embassy in Athens has stated. The confiscation of the cargo was earlier appealed by Tehran.

It is unclear if either Athens or the US will be challenging the decision of the Appeals court, however, an anonymous source claimed in an interview with Reuters that it might not be easy to achieve.

The oil in question was removed from Luna to another vessel hired by the US authorities in May as the court was still reviewing Tehran's appeal. It was then supposed to be moved to the US, but it is unclear if the ship transporting the Iranian oil, which now must be returned to the owner, has reached US shores.

Iran's embassy in Greece expressed hope that the crude can still be returned. The embassy said that it is conducting "intensive consultations" with Athens to "ensure full implementation" of the court's latest ruling.

The tanker Luna itself has since been released and arrested by Greek authorities again. The first time the ship was arrested was in April in a response to the order coming from the US, which slapped sanctions on Iran's oil industry and now hunts for its oil tankers around the world. The second arrest, however, is related to unpaid towing services, according to report by Reuters citing a lawyer representing an unnamed company behind the arrest order.

Iran condemned the actions of Athens, equalling them to state piracy and vowing to respond. Several weeks later Iran seized two Greek ships sailing on the fringes of Iranian national waters, accusing both of "maritime violations". Athens slammed the arrest of the ships sailing under its flag, while several media outlets alleged that their arrest could have been a retaliation for impounding Luna's cargo.