U.S. Seizes Iranian Ship in Strait of Hormuz as Peace Talks Stall

The U.S. Navy attacked and seized an Iranian cargo ship in the Strait of Hormuz on Sunday as part of Washington's blockade on Iranian vessels in the vital waterway. The action threatens to derail peace efforts just two days before the current ceasefire expires.

President Trump announced the ship seizure hours after the White House said it was sending a high-level delegation including Vice President JD Vance to peace talks in Pakistan. But Iranian state media reports that Tehran has not agreed to attend the meeting.

The timing has raised concerns that the ceasefire between the U.S. and Iran might collapse. Oil prices jumped more than 4% on Monday as traders worried about disruptions to the world's most important oil shipping lane.

The Strait of Hormuz carries about one-third of the world's seaborne oil traffic. Any military action there typically sends energy prices higher, affecting gas costs for drivers worldwide.