Iraq says Iran used forged Iraqi documents on oil tankers, Tehran denies

Baghdad: Iraq's oil minister Hayan Abdel-Ghani has said told state television that Iranian oil tankers stopped by US forces in the Gulf were using forged Iraqi documents.

US President Donald Trump's administration has restored his earlier "maximum pressure" policy on Iran, reviving a policy that seeks to isolate the country from the global economy and eliminate its oil export revenue in order to slow Tehran's development of a nuclear weapon.

"We received some verbal inquiries about oil tankers being detained in the Gulf by US naval forces carrying Iraqi shipping manifests," Abdel-Ghani said on state television late on Sunday, adding there had been no formal written communication.

"It turned out that these tankers were Iranian ... and were using forged Iraqi documents. We explained this to the relevant authorities with complete transparency and they also confirmed this."

Iran's oil ministry on Monday denied that Tehran had used forged official documents and said allegations that they had done so came from US officials, the ministry's Shana news agency reported.

"It's obvious that these allegations by US officials fold into the illegal... pressure on the nation of Iran and have no basis or credibility," Shana said.

Iran views neighbour and ally Iraq as vital to keeping its economy afloat while under sanctions. But Baghdad, a partner to both Washington and Tehran, is wary of being caught in the crosshairs of Trump's policy to squeeze Iran, sources have said.

Reuters reported in December that a sophisticated fuel oil smuggling network that experts believe generates at least $1 billion a year for Iran and its proxies has flourished in Iraq in the past few years, including by using forged documentation.

Abdel-Ghani said state marketer SOMO sold crude exclusively to companies that own refineries and does not supply trading firms.

"SOMO operates with full transparency and has committed no wrongdoing in the oil export process," he said.