Royal Marines seized the Panamanian flagged vessel by Gibraltar on suspicion it was heading to Syria, in defiance of against EU sanctions, following a US request. Britain’s ambassador in Tehran assured the Iranian regime the move was against Damascus and that Britain views Iran’s oil trade as legitimate in general. Mr Hunt tweeted: “Just spoke to Iranian Foreign Minister Zarif. Constructive call. I reassured him our concern was destination not origin of the oil on Grace One & that UK would facilitate release if we received guarantees that it would not be going to Syria, following due process in Gibraltar courts.

“Was told by Mr Zarif that Iran wants to resolve issue and is not seeking to escalate. Also spoke to Gibralatrian chief minister Fabian Picardo who is doing an excellent job co-ordinating issue and shares UK perspective on the way forward.”

This comes after Britain announced it was sending a second warship, HMS Duncan, a Daring class destroyer, to the Persian Gulf to protect British shipping.

The Tory leadership candidate praised Mr Picardo for his handling of the issue: “Mr Picardo noted that Gibraltar would be prepared to facilitate, subject to its obligations under EU law, the release of the detained assets to a rightful claimant if they were satisfied that they had received guarantees it would not be going to Syria.”

Iran is a key international ally of Damascus and has sent troops to support the Bashir al-Assad regime.

The Lebanese political party and militant group, Hezbollah, considered a terrorist organisation by London and widely accepted as a Tehran proxy is also fighting in Syria alongside pro-Assad forces.

Grace I for the time being remains in detention.

The captain and chief officer were arrested by Gibraltarian officials but released on bail without charge.

Iran’s oil supply is considered to be vital to the survival of their economy.

Increasing sanctions by the Donald Trump administration has caused a sharp decrease in the level of exports.

The British Government has long sought to ease tensions with the regime.

London has joined Paris and Berlin in a desperate attempt to save the Iran nuclear deal.

Mr Trump pulled out of the agreement last year increasing tensions in the region.

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