Brazilian court: Petrobras must supply fuel to Iranian ships

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Brazil Iranian Ships

A Port Authority officer points at the Bavand, one of two stranded Iranian vessels, anchored at the port in Paranagua, Brazil, Thursday, July 25, 2019. Brazil's top court says state oil company Petrobras must supply fuel to two Iranian vessels that have been stranded off the coast of Parana state since early June. Petrobras has been refusing to provide fuel to the two vessels, arguing that they appear on a U.S. sanctions list and that the company would risk significant fines. (AP Photo/Giuliano Gomes)

RIO DE JANEIRO (AP) — Brazil's top court said Thursday that state oil company Petrobras must supply fuel to two Iranian vessels that have been stranded off the coast of Parana state since early June.

The decision confirmed by the Federal Supreme Court upheld a previous ruling by a local court in the state. Petrobras says it has yet to be notified.

The oil company has argued that it would risk significant fines if it provided the fuel because the two vessels appear on a U.S. sanctions list.

Brazilian Foreign Affairs Minister Ernesto Araujo said that all parties had to comply with the court's order, but that Petrobras seemed to remain at risk of U.S. sanctions.

Iran's ambassador was quoted this week by Iran's semi-official Fars news agency saying that Tehran could reconsider imports from Brazil if the situation was not solved promptly.

Iran is the biggest importer of Brazilian corn and fifth biggest importer of meet and soybean.