DUBAI- Iran's seized oil tanker Grace 1 will be freed by Tuesday evening, the country's semi-official Fars news agency quoted unidentified Gibraltar authorities as saying.

Gibraltar said on Tuesday it was seeking to de-escalate issues arising with Iran since the detention of the Grace 1 tanker by British marines in July.

(Writing by Parisa Hafezi Editing by Peter Graff) ((parisa.hafezi@thomsonreuters.com; +90 532 176 3452; Reuters Messaging: parisa.hafezi@thomsonreuters.com))