The United States Navy has seized another oil tanker allegedly linked to Iranian smuggling networks, as the crisis in the Strait of Hormuz deepens with new military orders from US President Donald Trump.

The Pentagon confirmed that US forces intercepted the tanker in the Indian Ocean, part of what it described as ongoing maritime enforcement operations targeting illicit oil shipments connected to Iran. The vessel had been sanctioned in 2024 and was reportedly en route to China at the time of its seizure.

The move comes amid heightened tensions following reports that Iran attacked three commercial cargo ships in the Strait of Hormuz, capturing two of them and further disrupting traffic through a route that handles roughly 20 percent of global oil trade.

In a significant escalation, Trump said he had ordered the US Navy to use lethal force against any vessels suspected of laying mines in the strait.

In a social media post, he instructed forces to “shoot and kill” boats engaged in such activity, while also announcing a major expansion of mine-clearing operations in the waterway.

US naval units are currently conducting intensified mine-sweeping efforts, with officials warning that clearing operations could take months if the situation deteriorates further. Washington has also set a deadline for the reopening of the strait, signalling the possibility of additional measures if shipping is not restored.

Despite the rising tensions, diplomatic efforts may still be underway. Trump indicated that a new round of talks with Iran could take place within days, with Pakistan reportedly involved in facilitating negotiations.

The confrontation has already sent shockwaves through global energy markets. Brent crude oil has surged above $100 per barrel — up around 35 percent from pre-crisis levels — driving up fuel, transport and food costs worldwide.

European officials have warned of sustained economic fallout. Dan Jorgensen said the disruption could cost Europe as much as €500 million per day, likening the situation to previous major energy crises.

Analysts say the situation remains highly volatile, with the dual track of military escalation and potential diplomacy leaving the outlook for the region — and global markets — uncertain.

President Donald Trump wants ‌to see a “unified” response from Iran’s leadership to ​U.S. proposals to end ​hostilities, White House press ⁠secretary Karoline Leavitt ​said on Wednesday.

Leavitt told reporters ​that Trump had not set a deadline for an ​end to the ​ceasefire extension he announced on Tuesday, Reuters reported.

Earlier, ‌Leavitt ⁠said in an interview with Fox News’ “The Story with Martha MacCallum” ​that ​Iran must ⁠agree to turn over its enriched ​uranium to the ​United ⁠States as part of negotiations to end the ⁠war.

U.S. President Donald Trump said he would indefinitely extend the ceasefire with Iran to allow for further peace talks, although it was not ​clear on Wednesday if Iran or Israel, the U.S. ally in the two-month war, would agree, Reuters reported.

Trump said in a statement on social media the U.S. had agreed to a request by Pakistani ‌mediators “to hold our Attack on the Country of Iran until such time as their leaders and representatives can come up with a unified proposal … and discussions are concluded, one way or the other.”

Pakistan’s leaders have hosted peace talks in Islamabad to end a war that has killed thousands of people and shaken the global economy.

But even as he announced what appeared to be a unilateral ceasefire extension, Trump also said he would continue the U.S. Navy’s blockade of Iran’s trade by sea, considered an act of war by Iran.

There was ​no response early on Wednesday to Trump’s announcement from senior Iranian officials, although some initial reactions from Tehran suggested Trump’s comments were being treated skeptically.

Tasnim News Agency, affiliated with the Islamic Revolutionary Guards Corps, said ​Iran had not asked for a ceasefire extension and repeated threats to break the U.S. blockade by force. An adviser to Iran’s lead negotiator, the speaker of parliament ⁠Mohammad Baqer Qalibaf, said Trump’s announcement carried little weight and may be a ploy.

Trump’s wartime rhetoric has veered between extremes. In an expletive-filled threat against Iran only two weeks ago he promised that a “whole civilization will die tonight”, ​while at other times he has appeared keen to end the violence and market uncertainty, read the report.

With his announcement, Trump again pulled back at the last moment from his threats to bomb Iran’s power plants and bridges. United Nations Secretary General António Guterres ​and others have condemned those threats, noting international humanitarian law forbids attacks targeting civilians and civilian infrastructure.

The U.S. and Israel began the war on February 28 with aerial bombardments of Iran. The conflict quickly spread to Gulf states that host U.S. military bases and to Lebanon once the Iran-allied militant group Hezbollah joined the fighting.

Israeli Prime Minister Benjamin Netanyahu has for decades sought to oust Iran’s leadership, but Trump has given shifting and sometimes contradictory rationales for joining Israel to launch the war and how he ​foresees it ending, stirring confusion in global markets.

U.S. stock futures rose, the dollar wavered and oil prices turned lower on Wednesday after Trump’s announcement.

More than 5,000 civilians have been killed across the region and hundreds of thousands displaced so ​far, mostly in Iran and Lebanon, and the war has led to the virtual closure of the Strait of Hormuz, a vital chokepoint in global energy markets between Iran and Oman, sending oil prices soaring and fears that the global economy could ‌enter a recession.

Iran ⁠has repeatedly exploited its ability to control the passage of oil tankers and other ships in the strait in response to U.S. and Israeli attacks.

Trump said in his statement he was willing to extend the ceasefire because “the Government of Iran is seriously fractured, not unexpectedly so,” a reference to U.S.-Israeli assassinations of some of the country’s leaders in the war’s first weeks, including the late Supreme Leader Ayatollah Ali Khamenei, who has been succeeded by his son, Reuters reported.

A few hours before his announcement, Trump had told the CNBC news channel that he was not inclined to continue the temporary truce and the U.S. military was “raring to go.”

Those comments came as tentatively scheduled peace talks in Islamabad seemed on the ​verge of falling apart: U.S. Vice President JD Vance, ​whose presence has been requested by the Iranians, ⁠had planned to return to Pakistan on Tuesday but a White House official said he had not yet departed Washington and was taking part in additional policy meetings.

Before Trump’s latest announcement, a senior Iranian official told Reuters that Iran’s negotiators had been willing to attend another round of talks if the U.S. abandoned a policy of pressure and ​threats, and rejected negotiations aimed at surrender.

Iran has condemned the U.S. Navy intercepting and seizing two commercial Iranian ships at sea as part of its blockade, the second ​earlier on Tuesday, with its ⁠foreign ministry accusing the U.S. of “piracy at sea and state terrorism.” The U.S., joined by multiple other countries, has condemned Iran for impeding freedom of navigation in the Strait of Hormuz.

Hours after extending the ceasefire, Trump doubled down on the U.S. blockade, saying in a social media post that lifting it would undermine any chance of a peace deal “unless we blow up the rest of their Country, their leaders included.”

A first session of talks 10 days ago produced no agreement, with much ⁠of the focus ​on Iran’s stockpiles of highly enriched uranium, read the report.

Trump wants to take the uranium out of Iran in order to prevent the country from enriching ​it further to the point where it could develop a nuclear weapon. Iran says it has only a peaceful civilian nuclear program and a sovereign right to continue that as a signatory of the nuclear weapons non-proliferation treaty.