Seoul — Iran has denied that it is using a South Korean ship and its crew as hostages, a day after it seized the tanker in the Gulf while pressing a demand for Seoul to release $7bn in funds frozen under US sanctions.

The seizure of the MT Hankuk Chemi and its 20-member crew near the strategic Strait of Hormuz has been seen as an attempt by Tehran to assert its demands, just two weeks before president-elect Joe Biden takes office in the US...

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