Iran frees South Korean ship, captain after promise to help with frozen funds

Iran on Friday released a South Korean-flagged tanker it seized amid a dispute over billions in frozen oil funds, the foreign ministry in Seoul said.

Iran released on Friday a South Korean ship and its captain detained since January after South Korea promised to try to secure the release of Iranian funds frozen in South Korean banks under U.S. sanctions, a South Korean official said. Iranian authorities seized the chemical tanker in the Strait of Hormuz off Oman. They accused it of polluting the waters with chemicals. The issue triggered a diplomatic dispute after Iran demanded that South Korea release $7 billion in funds frozen in South Korean banks under U.S. sanctions.