Donald Trump said US forces had taken control of the ship following a prolonged standoff. According to the US military, the Iranian-flagged vessel was heading toward Bandar Abbas when it was intercepted, fired upon, and disabled before marines boarded it from helicopters.

Iran’s military condemned the action as “armed piracy,” warning that a response would follow. Officials said the vessel had originated from China and accused Washington of violating the ceasefire through its continued blockade of Iranian ports.

The situation has cast doubt over planned diplomatic efforts, with Iran announcing it would not participate in a second round of talks that the US had hoped to begin before the ceasefire expires. Tehran cited ongoing blockades, threats, and what it described as shifting US demands.

The confrontation has also intensified pressure on global energy markets. With both sides imposing restrictions around the Strait of Hormuz—a key route handling roughly one-fifth of global oil supply—oil prices jumped more than 5%, while stock markets showed volatility.

Iran’s First Vice President Mohammadreza Aref said restricting Iranian oil exports while expecting open access for others was unacceptable, warning of broader consequences for global markets.

Trump has continued to issue strong warnings, saying the US could target Iranian infrastructure if Tehran rejects its terms. Iran, in turn, has threatened to strike energy and water facilities in Gulf states hosting US assets if attacked.

Meanwhile, uncertainty surrounds potential talks in Islamabad. While US officials initially indicated that JD Vance would lead a delegation, conflicting statements from Trump have cast doubt on the plan.

Pakistan, which has been mediating the conflict, has stepped up preparations. Reports said US military cargo aircraft carrying equipment have arrived, while security in Islamabad has been tightened, with road restrictions and heightened protection around key venues.

Despite earlier indications of progress, major differences remain over Iran’s nuclear programme and control of the Strait of Hormuz. European allies have also expressed concern that any rushed agreement could lack substance and require prolonged follow-up negotiations.

Now in its eighth week, the conflict has already caused severe disruption to global energy supplies and regional stability, with thousands killed and fears growing that further escalation could have far-reaching consequences.