The U.S. Navy guided-missile destroyer USS Spruance fired into the engine room of an Iranian-flagged cargo ship in the Gulf of Oman on Sunday and turned the disabled vessel over to Marines, the first shot fired and first ship seized since President Trump imposed a naval blockade on Iranian ports a week ago. Within hours, Iran's state news agency IRNA said Tehran had declined to attend a second round of peace talks scheduled for Monday evening in Islamabad, Pakistan.

The seizure of the Touska collapses the narrow diplomatic window before a two-week U.S.-Iran ceasefire expires Wednesday, and it arrived as Iran again shut the Strait of Hormuz to commercial traffic after briefly reopening it Friday. U.S. crude jumped 6.4 percent to $87.88 a barrel in early Sunday trading, and Brent climbed 6.5 percent to $96.25, according to prices on the Chicago Mercantile Exchange reported by the Associated Press.

What the Navy did

U.S. Central Command said the Spruance warned the Touska's crew over a six-hour period before firing several rounds from the destroyer's 5-inch MK 45 gun into the ship's engine room. Marines from the 31st Marine Expeditionary Unit then boarded the vessel. "American forces acted in a deliberate, professional, and proportional manner to ensure compliance," the command said in a statement.

Trump, announcing the seizure on Truth Social, said the Spruance "gave them fair warning to stop." He wrote: "The Iranian crew refused to listen, so our Navy ship stopped them right in their tracks by blowing a hole in the engineroom." The president said Marines have custody of the ship, which he said is under U.S. Treasury sanctions "because of their prior history of illegal activity." The Washington Examiner, citing Trump's post, reported the Touska is nearly 900 feet long.

Before Sunday, U.S. forces had turned back 23 to 25 commercial vessels attempting to enter or leave Iranian ports without firing on any of them, according to CENTCOM figures cited by NPR.

Tehran's response

Iran's military accused the United States of "maritime piracy" and vowed to "soon respond" to the seizure, Axios reported, citing Iranian state media. IRNA said the government was rejecting the Islamabad talks, citing "Washington's excessive demands, unrealistic expectations, constant shifts in stance, repeated contradictions, and the ongoing naval blockade," which Iran considers a breach of the ceasefire.

Iran's chief negotiator, parliament speaker Mohammed Bagher Qalibaf, said on state television that ships would not transit the strait while the U.S. cordon held. "It is impossible for others to pass through the Strait of Hormuz while we cannot," Qalibaf said. Iran's Supreme National Security Council said the country would exercise "supervision and control" over traffic through the waterway until the war ends.

About one-fifth of the world's seaborne oil and natural gas passes through the strait, which Iran has kept closed to international tankers for most of the time since the U.S. and Israel attacked the country on Feb. 28. The war has killed at least 3,000 people in Iran, more than 2,290 in Lebanon, 23 in Israel and more than a dozen in Gulf Arab states, the Christian Science Monitor reported. Fifteen Israeli soldiers in Lebanon and 13 U.S. service members across the region have also been killed.

Shipping stranded

Hundreds of commercial tankers remain stranded on both sides of the strait after Iran reimposed the closure Saturday. Nils Haupt, senior director of group communications at Hapag-Lloyd, told Fox News Digital the container line had activated a crisis team and that six of its ships were anchored near Dubai. "The crews are well, but they are becoming increasingly impatient and frustrated," Haupt said. More than 20,000 seafarers have been stuck on ships in the Gulf since the war began, NPR reported.

During Saturday's brief reopening, Iranian Revolutionary Guard boats fired on two India-flagged merchant ships, the U.K.'s Maritime Trade Operations Centre and Indian officials said. New Delhi summoned Iran's ambassador over what it called a "serious incident of firing on merchant ships." Trump earlier Sunday threatened that if Iran refused a deal, "the United States is going to knock out every single Power Plant, and every single Bridge, in Iran."

The counterargument

Iranian officials cast the blockade itself as the violation. Foreign ministry spokesperson Esmaeil Baqaei called it an "act of aggression," and Deputy Foreign Minister Saeed Khatibzadeh told the Associated Press the U.S. is "risking the whole ceasefire package." Khatibzadeh also said Iran would not surrender its stockpile of 970 pounds of enriched uranium, calling that demand "a nonstarter." Pakistani Foreign Minister Ishaq Dar, who spoke Sunday with Iranian Foreign Minister Abbas Araghchi, said Islamabad was working to "bridge" differences between the two sides.

What to watch

The two-week ceasefire expires Wednesday. Vice President JD Vance, special envoy Steve Witkoff and Jared Kushner were still scheduled to fly to Islamabad on Monday, a White House official told NPR, though Iran's public withdrawal leaves it unclear whether a second round of talks will occur. Energy Secretary Chris Wright told CNN's "State of the Union" that U.S. gasoline, which AAA pegged at an average of nearly $4.05 a gallon on Sunday, likely will not fall below $3 until next year.