U.S has applied to seize Grace 1 tanker, Gibraltar says

LONDON (Reuters) - The U.S. Department of Justice has applied to seize the Iranian tanker Grace 1, which is being held in Gibraltar on suspicion of smuggling oil to Syria in breach of European Union sanctions, the British overseas territory said on Thursday.

"The U.S. Department of Justice has applied to seize the Grace 1 on a number of allegations which are now being considered," the Gibraltar government said in a statement. "The matter will return to the Supreme Court of Gibraltar at 4 p.m. (1400 GMT) today."

(Reporting by Michael Holden; editing by Kate Holton)