Three ships came under fire in the Strait of Hormuz on Wednesday, putting the possibility of any peace talks in jeopardy, after a senior Iranian official said that President Trump's last-minute ceasefire extension "means nothing."
The first ship was attacked and damaged by Iran's paramilitary Revolutionary Guard Corps, the British military said, though no injuries were reported.
"The Master of a Container Ship reported that the vessel was approached by 1 IRGC gun boat," according to the United Kingdom Maritime Trade Operations center (UKMTO).
No warning was given, but it "then fired upon the vessel which has caused heavy damage to the bridge," the center said on X.
Iran's semi-official Tasnim News Agency confirmed the incident, saying the container ship had "ignored repeated warnings."
The UKMTO did not immediately say who was responsible for the attack on the second cargo vessel, only that there was no damage or injuries.
Iran's semi-official Fars news agency also reported Iran's Navy had attacked a third ship, called the "Euphoria." Iranian media reported that the Iranian Navy had "seized" the two other vessels, which it identified as the "MSC-Francesca" and the "Epaminodes".
The attacks come after President Trump indefinitely extended the ceasefire with Iran at the 11th hour, ahead of its expiration. Trump said he was doing so at the request of mediating country Pakistan and it would give Tehran time to present a "unified proposal."
That's after a U.S. delegation had been slated to travel to Islamabad for a second round of peace talks, a plan that dissolved after Iran said it would not be attending.
Mahdi Mohammadi, an adviser to Iran's main negotiator Mohammad Bagher Ghalibaf, posted on X: "Trump's ceasefire extension means nothing, the losing side cannot dictate terms."
Iranian Foreign Minister Seyed Abbas Araghchi said earlier that "blockading Iranian ports is an act of war and thus a violation of the ceasefire." He added that the U.S. seizure of an Iranian ship on Sunday was "an even greater violation."
Here are more developments on day 54 of the Middle East war:
Iran's economy | UK-France conference | International reaction | Airline fuel struggles | Points of contention
Trump says Iran flailing economically
Despite Iran's refusal to attend negotiations this week, Trump says the country is in dire economic straits.
"Iran is collapsing financially! They want the Strait of Hormuz opened immediately- Starving for cash! Losing 500 Million Dollars a day. Military and Police complaining that they are not getting paid. SOS!!!," he posted on Truth Social late Tuesday.
Treasury Secretary Scott Bessent posted on X on Tuesday that under Trump's orders the U.S. Navy will continue the blockade of Iran's ports.
"In a matter of days, Kharg Island storage will be full and the fragile Iranian oil wells will be shut in. Constraining Iran's maritime trade directly targets the regime's primary revenue lifelines," he said.
He also said his office would continue to "systematically degrade Tehran's ability to generate, move, and repatriate funds."
Conference seeks solution to Strait standoff
The United Kingdom and France are hosting a two-day conference starting Wednesday aimed at reopening the Strait of Hormuz. One of the challenges is to remove undersea mines Iran is believed to have planted there.
Military planners from more than 30 countries are meeting at a Royal Air Force base north of London to put together a multinational mission to safeguard the Strait of Hormuz amid global concerns over oil and energy prices.
A poll in the U.K. shows 1 in 10 people are already stockpiling fuel.
British defense officials have previously floated the idea of deploying autonomous mine-hunting systems from motherships sent to the Gulf. But they caution that whatever plan they come up with at this two-day conference will only take effect after what they call a sustained ceasefire between Iran and the U.S.
International reaction
U.N. Secretary General Antonio Guterres cautiously welcomed Trump's announcement of a ceasefire extension.
"This is an important step toward de-escalation and creating critical space for diplomacy and confidence-building between Iran and the United States," he said.
He added: "We encourage all parties to build on this momentum, refrain from actions that could undermine the cease-fire, and engage constructively in negotiations to reach a sustainable and lasting resolution."
China has warned the Middle East is at a "critical stage."
"The paramount priority remains to make every effort to prevent a resumption of hostilities," Chinese foreign ministry spokesman Guo Jiakun told a news briefing Wednesday.
Kaja Kallas, the European Union's foreign policy chief, said: "Daily U-turns, whether the Strait of Hormuz is open or closed, are reckless. Transit through the Strait must remain free of charge."
She said the EU was widening sanctions on Tehran, adding "none of us want to see a nuclear-armed Iran."
High jet fuel prices squeeze airlines
Meanwhile, the war and strait blockade are continuing to rattle global markets and push up costs, with the airline industry particularly hard hit.
On Tuesday, German airline Lufthansa said that because the price of jet-fuel had doubled since the start of the war, it was cutting 20,000 flights through October in an attempt to save fuel.
United Airlines has also been impacted, with Reuters news agency reporting the Chicago-based carrier had forecast second-quarter and full-year profits below Wall Street estimates.
Meanwhile, the Department of Transportation says it is taking "a look" at Spirit Airlines at the request of Trump. Spirit filed for bankruptcy protection in August for the second time in less than a year.
Now soaring fuel costs tied to the Iran war are adding more uncertainty about the carrier's ability to keep operating. It's not the only one:last week a trade association for low-cost carriers sent a letter to Congress asking for temporary tax relief.
What are the major sticking points?
For officials in Washington, the main points of contention remain control over the Strait of Hormuz and the future of Iran's nuclear program.
The Trump administration has said it wants commercial shipping through the strategic waterway to be fully restored. Around 20% of the world's crude oil and natural gas typically passes through the strait.
After the U.S. and Israel attacked Iran on Feb. 28, Iran began to exert control over the Strait of Hormuz. It has prevented most commercial ships from transiting and has collected steep tolls from some of the few that did.
Vice President Vance said the first round of ceasefire talks held over a week ago broke down because Iran would not commit to forgoing a nuclear weapon.
"The simple fact is that we need to see an affirmative commitment that they will not seek a nuclear weapon, and they will not seek the tools that would enable them to quickly achieve a nuclear weapon," Vance said.
For Tehran, the key demands for extending the ceasefire include an end to the U.S. naval blockade of Iranian ports and guarantees that the fighting between Israel and Hezbollah will not resume.
Israel and Lebanon agreed on a 10-day ceasefire last week, pausing fighting between Israel's military and the Iran-backed Lebanese militant group Hezbollah. Israel and Lebanon are due to hold fresh talks in Washington on Thursday.
Lauren Frayer in Glasgow, Scotland, Joel Rose in Washington, Jane Arraf in Amman, Jordan, and Kate Bartlett in Johannesburg contributed to reporting.
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