Iran Denies Drone Loss, Gibraltar to Detain Grace 1 longer

Iran on Friday denied President Donald Trump's
assertion that the U.S. Navy has destroyed one of its drones,
saying all of its unmanned planes were accounted for, amid
growing international concern that both sides could blunder into
a war in the Gulf.
In the latest episode to test nerves around the strategic
waterway, Trump said on Thursday the drone had flown to within
1,000 yards (914 metres) of the U.S. warship Boxer in a
"provocative and hostile action" and had ignored several calls to
stand down.
Iran dismissed the report.
"All drones belonging to Iran in the Persian Gulf and the Strait
of Hormuz ... returned safely to their bases after their mission
of identification and control," Abolfazl Shekarchi, a senior
armed forces spokesman, was quoted as saying by the semi-official
Tasnim news agency.
"And there is no report of any operational response by USS
Boxer."
A U.S. official, speaking on condition of anonymity, said the
drone on Thursday was brought down through electronic jamming.
CAUTION FROM BOTH SIDES
Gulf tensions are high, with fears the United States and its
longtime foe Iran could stumble into war. But despite tough talk
on both sides, Washington and Tehran have shown restraint.
Tehran on Thursday signalled a willingness to engage in diplomacy
with a modest offer on its nuclear work - ratification of a
document prescribing more intrusive nuclear inspections if
Washington abandoned its economic sanctions.
While U.S. officials suggested they viewed the idea as a
non-starter, analysts said it could provide an opening for
Trump's administration to pursue diplomacy.
German Chancellor Angela Merkel said that she was concerned about
the situation in the Gulf.
"Of course I'm concerned. You can't look at this region without
being concerned at the moment," Merkel told a news conference.
"Every opportunity for diplomatic contact should be attempted to
avoid an escalation."
In the latest development in a standoff between Iran and Britain
that has also stoked Gulf tensions, Gibraltar's supreme court
granted a 30-day extension to allow authorities to detain the
Iranian oil tanker Grace 1 until Aug. 15.
Iran has vowed to respond to what it calls Britain's "piracy"
over the seizure of the vessel.
The tanker was seized earlier this month by British Royal Marines
off the coast of the British Mediterranean territory on suspicion
of violating sanctions against Syria.
The United States has blamed Iran for a series of attacks since
mid-May on shipping around the Strait of Hormuz, the world's most
important oil artery. Tehran rejects the allegations.
Iran in June shot down a U.S. military surveillance drone in the
Gulf with a surface-to-air missile, saying the drone was in its
airspace. Washington says it was in international skies.
The increased use of drones by Iran and its allies for
surveillance and attacks across the Middle East is raising alarms
in Washington.
Iran's elite Revolutionary Guards said in a statement they would
release images to disprove Trump's contention that the U.S. Navy
had destroyed a drone.
"Soon, images captured by the Guards drones from the U.S. warship
Boxer will be published to expose to world public opinion as lies
and groundless the claim," the Guards said.
IRAN OIL EXPORTS DROP
Relations between the United States and Iran have worsened since
last year when Trump abandoned a 2015 a nuclear deal between
world powers and Tehran. Under the pact, Iran agreed to restrict
nuclear work long seen by the West as a cover for developing
atomic bombs in return for the lifting of sanctions.
The United States has reimposed sanctions to throttle Iran's oil
trade and pressure Tehran to renegotiate the accord, discuss its
ballistic missiles and modify its regional policies.
Iranian oil exports have dropped nearly ten fold to around 0.3
million bpd in June from 2.8 million bpd in early 2018.
The United States is struggling to win its allies' support for an
initiative to heighten surveillance of vital Middle East oil
shipping lanes because of fears it will increase tension with
Iran, six sources familiar with the matter said.
Washington proposed on July 9 boosting efforts to safeguard
strategic waters off Iran and Yemen where it blames Iran and its
proxies for tanker attacks. Iran denies the charges.
But with Washington's allies reluctant to commit new weaponry or
fighting forces, a senior Pentagon official told Reuters that the
United States' aim was not to set up a military coalition but to
shine a "flashlight" in the region to deter attacks on commercial
shipping.
By Parisa Hafezi
Jul 19, 2019