US Seizes Iranian Vessel As Tehran Threatens Retaliation, Ceasefire Collapse Fears Grow
Concerns intensified on Monday over the fragile ceasefire between the United States and Iran after Washington confirmed the seizure of an Iranian cargo vessel, prompting swift retaliation threats from Tehran.
The development comes days before the expiration of a two-week ceasefire, with diplomatic efforts to secure a longer-term agreement faltering. Iran has rejected plans for a second round of negotiations proposed by the US, casting further doubt on prospects for de-escalation.
The US continues to enforce a blockade on Iranian ports, while Iran has intermittently imposed its own restrictions on maritime traffic through the Strait of Hormuz, a critical global oil route that carries about one-fifth of the world’s supply.
According to the US military, forces fired on an Iranian-flagged cargo ship bound for Bandar Abbas on Sunday after a six-hour standoff, disabling its engines. US marines then boarded the vessel from helicopters.
“We have full custody of their ship, and are seeing what’s on board!” President Donald Trump wrote on social media.
Iran’s military said the ship had been travelling from China and condemned the action.
“We warn that the armed forces of the Islamic Republic of Iran will soon respond and retaliate against this armed piracy by the U.S. military,” a military spokesperson said, according to state media.
Markets reacted sharply, with oil prices rising more than 5% and stocks fluctuating amid fears that renewed hostilities could further disrupt Gulf shipping lanes.
Iranian officials also dismissed renewed diplomatic overtures from Washington, citing continued economic pressure and shifting US demands.
“One cannot restrict Iran’s oil exports while expecting free security for others,” Iran’s First Vice President Mohammadreza Aref wrote on social media. “The choice is clear: either a free oil market for all, or the risk of significant costs for everyone.”
President Trump had earlier warned that the US would target Iran’s infrastructure if Tehran rejected its terms, escalating tensions further. Iran has responded by threatening strikes on power and water facilities in Gulf states hosting US bases.
Despite uncertainty surrounding the talks, preparations appeared to be underway in Pakistan, which is mediating the process. US envoys were expected in Islamabad on Monday, although conflicting reports emerged over the composition of the delegation.
A White House official said Vice President JD Vance would lead the team, alongside envoy Steve Witkoff and Jared Kushner. However, Trump later indicated that Vance would not be attending.
Security measures were heightened in Islamabad ahead of the anticipated visit, with reports of US military cargo planes delivering equipment and authorities restricting movement across parts of the city.
Iran’s parliament speaker, Mohammad Baqer Qalibaf, acknowledged some progress in earlier discussions but said significant differences remained, particularly on nuclear issues and control of the Strait of Hormuz.
European allies have expressed concern that Washington is pushing for a quick agreement that may not address complex technical issues requiring prolonged negotiations.
Now in its eighth week, the conflict has triggered one of the most severe disruptions to global energy supplies in history, driven largely by the reduced flow of oil through the Strait.
The war has also taken a heavy human toll, with thousands killed in US-Israeli strikes on Iran and a parallel Israeli offensive in Lebanon since hostilities began on February 28. Iran has responded with missile and drone attacks targeting Israel and neighbouring countries hosting US military bases.
Meanwhile, Iran’s judiciary confirmed the execution of two men convicted of collaborating with Israel’s Mossad intelligence agency and plotting attacks against the country.
Faridah Abdulkadiri
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