Iran’s military has vowed to “soon respond and retaliate” after the United States fired on and seized an Iranian-flagged cargo ship travelling from China to Bandar Abbas port, raising fears the two-week ceasefire will collapse before it expires on Tuesday.
President Donald Trump confirmed the seizure on social media, saying US forces had “full custody” of the vessel and were examining its contents. An Iranian military spokesperson called the operation “armed piracy” and warned of a military response, according to state media.
Iranian state media also reported that Tehran has rejected a second round of direct talks with Washington in Islamabad, citing the continued US blockade of Iranian ports, threatening rhetoric, and what Iran described as “excessive demands” and shifting positions.
“One cannot restrict Iran’s oil exports while expecting free security for others. The choice is clear: either a free oil market for all, or the risk of significant costs for everyone,” Iran’s First Vice President Mohammadreza Aref wrote on social media.
Brent crude futures jumped about 7% to around $96.85 a barrel in early Asian trading, while S&P 500 futures fell roughly 0.9% on the conflicting signals. The price rebound reverses much of the relief that followed the Pakistan-brokered April 8 ceasefire.
Tehran’s semi-official Tasnim news agency said two liquefied petroleum gas tankers attempting to transit the Strait of Hormuz were turned back by Iranian armed forces on Saturday. One vessel later exited the Gulf on a second attempt, according to MarineTraffic data. The turn-backs threaten Sri Lanka’s LPG imports alongside the broader oil supply risk flagged in Sunday’s $96 Brent surge.
Trump said his envoys would arrive in Islamabad on Monday evening, one day before the ceasefire ends. A White House official said Vice President JD Vance would lead the delegation alongside envoy Steve Witkoff and Jared Kushner — though Trump separately told ABC News and MS Now that Vance would not travel. The Serena Hotel in Islamabad, the venue for last week’s failed talks, has asked guests to vacate as Pakistani authorities tighten security.
Iran has also warned that any US strike on civilian infrastructure would trigger Iranian attacks on power stations and desalination plants of Gulf Arab neighbours — an echo of Trump’s earlier threat to knock out Iranian power plants.
