Iran Releases Detained Indian Tanker

Iran has released an Indian oil tanker that was detained by Iranian naval authorities more than three weeks ago, senior government officials said Saturday.

"The vessel was released 0010 today (Saturday) local time. She is sailing," said an Iranian port official, who didn't want to be identified.

An official with the Shipping Corp of India, the ship's owner, confirmed the development and said the ship is currently close to Fujheda in Oman.

He said the vessel was released after Indian authorities gave a letter of guarantee to pay up to $1 million, in case of any pollution damages.

Iran detained the ship carrying crude oil from Iraq to India on Aug. 13, saying it was polluting Iranian waters. India has denied the allegation, and according to the tanker's owner, state-run Shipping Corp., the vessel wasn't in Iranian waters when it was detained.

New Delhi and Tehran traditionally have had strong diplomatic ties, but the prolonged dispute over the tanker has raised tensions on both sides.

India is one of the few destinations for Iran's oil, as New Delhi and Tehran have worked out a system to skirt Western sanctions. India places rupee-denominated payments in an Indian bank to pay for oil, and the funds are debited from the account when Iran buys Indian goods that may include grain, consumer products and auto parts.