Iran seized a foreign oil tanker near Qeshm Island in the Persian Gulf, which it reported was carrying 4 million liters of contraband fuel.
Iranian authorities did not provide any other information about the ship's flag.
They reported that 16 foreigners, crew members, were taken into custody on criminal charges.
Iran, which has some of the lowest fuel prices in the world due to high subsidies and a falling hryvnia, is struggling to deal with fuel smuggling by land to neighboring countries and by sea to Gulf Arab states.
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