Iran’s first vice president, Mohammad Reza Aref, has said that global fuel prices will only stabilise if economic and military pressures on Iranian oil exports end.

“One cannot restrict Iran’s oil exports while expecting free security for others,” Aref wrote on X.

“The choice is clear: either a free oil market for all, or the risk of significant costs for everyone,” he said.

Iran’s military has vowed a swift response to the US seizure of an Iranian-flagged tanker in the Gulf of Oman, state media reported.

The military headquarters said the attack and subsequent boarding of the ship by US forces was a violation of the ceasefire and denounced it as piracy, Iran’s state-run broadcaster said.

“The aggressive America… attacked one of Iran’s commercial ships… and disabled its navigation system,” the statement said, adding, “We warn that the Armed Forces of the Islamic Republic of Iran will soon respond to and retaliate against this armed piracy by the US military.”

The US Navy said it attacked and seized an Iranian-flagged cargo ship after it allegedly attempted to evade a naval blockade near the Strait of Hormuz.

The US said it fired on the vessel and seized it because it had crossed the blockade line after ignoring multiple warnings.

Meanwhile, Iran’s foreign minister, Abbas Aragchi, told his Pakistani counterpart that Washington’s demands in negotiations, along with its threats to Iranian ships and ports, were “clear signs” of America’s disingenuousness.

Oil prices rebounded more than 6 per cent this morning ‌after tumbling more than 9 per cent on Friday on news the Strait of Hormuz is closed again.

Both the US and Iran said the other party had violated their ceasefire deal by attacking ​ships over the weekend.

Brent crude futures jumped $6.11, or 6.76 per cent, to $96.49 a barrel and US West Texas Intermediate was at $90.38 a barrel, ⁠up $6.53, or 7.79 per cent.

The US military had seized an Iranian cargo ship that tried to run ​its blockade, president Donald Trump said, while Iran said it would ​not participate in a second round of peace talks despite Trump’s threat of renewed airstrikes.

U.S. Central Command released a video of a U.S. Navy ship firing on an Iranian-flagged cargo ship. U.S. Marines boarded and seized the ship on Sunday.

The Iranian military warned on Sunday that it will retaliate for the cargo tanker U.S. Marines seized on Sunday.

In a social media post by IRIB, Iran’s state broadcaster, the nation’s military likened the seizure to “highway robbery.”

“The ‘aggressor United States,’ by violating the ceasefire and engaging in maritime highway robbery, attacked an Iranian commercial vessel in the waters of the Sea of Oman,” the post said.

It then threatened to retaliate against what it called “piracy.”

“We warn that the Armed Forces of the Islamic Republic of Iran will soon respond to and retaliate against this U.S. armed piracy,” the post said.

The price of oil increased on Sunday in response to Iran’s announcement that it will again close the Strait of Hormuz in response to a U.S. blockade of the waterway.

The price of bent crude — the international standard for pricing oil — increased by approximately 7 percent, up to $96.88 on Sunday. On Friday the price dropped to its lowest levels since March 10 following news that Iran planned to re-open the strait.

U.S. Energy Secretary Chris Wright told CNN that gas prices might remain well over $3 a gallon until at least “next year.”

On Sunday, the national average for a gallon of gas in the U.S. was $4.05.

Pakistan, ‌which has served as the main mediator between the US and Iran, appeared to be preparing for the talks on Sunday, despite it remaining unclear whether the negotiations would go ahead.

Two giant U.S. ‌C-17 cargo planes landed at an air base on Sunday afternoon, carrying security equipment and vehicles in preparation for the US delegation’s arrival, two Pakistani security sources told Reuters.

Municipal authorities in the capital city of Islamabad halted public transport and heavy-goods traffic through the city. Barbed wire was rolled out near the Serena Hotel, where last week’s talks were held. The hotel told all guests to leave.

The apparent diplomatic setback could set the stage for ⁠a renewed surge in oil prices when markets reopen after the weekend.

UK foreign secretary Yvette Cooper has said that any talks between the US and Iran must result in a toll-free passage for vessels through the Strait of Hormuz.

Ms Cooper said that proposals have been circulating from Tehran to introduce tolls on the crucial waterway once the conflict concludes.

Ms Cooper was travelling to Japan on Sunday on the final leg of a diplomatic mission ahead of the US-Iran ceasefire expiring on Tuesday, which she called a “critical diplomatic moment”.

The Strait of Hormuz, through which a fifth of the world’s oil normally flows, has been closed by Iran as a response to America and Israel’s strikes.

In retaliation, US President Donald Trump began his own blockade of Iran’s oil ports, aimed at stemming Tehran’s fossil fuel income.

“Today, an Iranian-flagged cargo ship named TOUSKA, nearly 900 feet long and weighing almost as much as an aircraft carrier, tried to get past our Naval Blockade, and it did not go well for them,” he wrote.

Trump said that the ship’s crew “refused to listen, so our Navy ship stopped them right in their tracks by blowing a hole in the engineroom.”

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U.S. Central Command released a video of a U.S. Navy ship firing on an Iranian-flagged cargo ship. U.S. Marines boarded and seized the ship on Sunday.