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It was flying the flag of one of the other gulf states. If it's legally flagged as a countries ship it's their ship regardless of the real ownership or who owns or is getting the cargo.

You have to wonder if the Iraqi's deliberately sank it to cause the US problems in the gulf states and with other Muslim nations (idea that US is at war with Muslims not the Taliban and Al Queda)

It was flying the flag of one of the other gulf states. If it's legally flagged as a countries ship it's their ship regardless of the real ownership or who owns or is getting the cargo.

I am not familiar with maritime law or standard operating procedure. Assume that it was legally flagged as another country. Why would they allow IRAQ to smuggle oil IF they knew they were smuggling oil unless they were aiding and abetting or are you saying that if they are legally flying the flag it is no longer IRAQ smuggling oil but that country legally bringing in oil
If they didn't know it, why were they allowing IRAQ to fly their flag?