The US military said on Tuesday it boarded the Iran-linked oil tanker Tifani in international waters "without incident," in the first such move against Iranian crude exports. The ship was carrying nearly 2 million barrels of crude oil and was headed for Singapore, according to MarineTraffic data cited by "Reuters".
The US Central Command said: "As we have made clear, we will continue global maritime law enforcement efforts to disrupt illicit networks and intercept sanctioned vessels providing material support to Iran - wherever they operate".
Shortly after, President Donald Trump said he did not want to extend the expiring ceasefire in the US-Israeli war against Iran and warned that US forces were ready to act if talks failed.
When asked about a possible extension of the ceasefire, Trump told CNBC: "I don't want to do that. We don't have that much time." "I expect to bomb because I think that's the better mindset to start with," he added. "But we are ready. I mean, the military is eager to start." Iran has warned of retaliation. Government spokeswoman Fatemeh Mohajerani said, "We don't want to be attacked again, but if such attacks happen, we will definitely respond more firmly than before." Washington has expressed confidence that a new round of talks could be held in Pakistan, although Iranian officials have indicated that there has been no final decision on participation. Pakistani officials said no delegations were expected until Wednesday, and nearly 20,000 security personnel were deployed in Islamabad.
Iran has been demanding recognition of its right to enrich uranium and the lifting of sanctions. Trump has demanded Tehran give up its stockpile of highly enriched uranium and says it cannot get funding to develop nuclear weapons.
The Strait of Hormuz remains largely blocked, holding up about 20 million barrels per day of oil supplies. Crude prices fell about $0.30 on hopes of renewed talks, after rising about 6% a day earlier.
The war has caused major turmoil in energy markets and fears of a global recession. France has said the surge in energy prices and bond yields will cost the budget between 4 billion and 6 billion euros.