US President Donald Trump announced that American forces seized an Iranian-flagged cargo ship, Touska, in the Gulf of Oman after it attempted to breach the US naval blockade in the Strait of Hormuz.
The US navy guided missile destroyer USS Spruance intercepted the Iranian vessel and 'blew a hole in the engineroom' after it failed to heed warnings to stop.
In response, Iranian forces reportedly launched drone attacks, with a spokesperson for Iran's Khatam al-Anbiya Central Headquarters vowing retaliation against the US.
Despite hopes for an extension of the ceasefire set to expire on Wednesday, Iranian officials have ruled out attending peace talks with the US in Pakistan, citing Washington's 'excessive demands' and 'unrealistic expectations'.