Iran is accused of seizing a commercial vessel linked to Israel while transiting the Strait of Hormuz early Saturday morning.
The MSC Aries was boarded by Iranian special forces about 50 miles (80 kilometers) off the coast of the United Arab Emirates, the MSC said in a statement.
Footage obtained by Reuters showed troops rappelling from helicopters onto the ship.
The Portuguese-flagged ship has ties to Israeli billionaire Eyal Ofer.
The incident comes amid heightened expectations of an Iranian attack on Israel after the Iranian consulate in Damascus was destroyed in an airstrike in early April. Israel said on Saturday that Iran would bear the consequences if it chooses to escalate the situation further.
Tracking data shows the MSC Aries was off the coast of the UAE heading towards the Strait of Hormuz more than 18 hours ago. It appears they have since turned off their tracking data, which is common for Israeli-linked vessels in the region.
Britain's Maritime and Trade Services Authority confirmed the boarding in a statement. It did not mention Iranian involvement, instead saying the ship had been seized by “regional authorities” off the coast of Fujairah in the United Arab Emirates.
However, Iranian media has been quick to tout the involvement of the country's special forces in the attack.
The country's state-run Irnar news agency reported that the Islamic Revolutionary Guards Corps (IRGC)'s naval branch had seized the MSC Aries because it had “links to Israel.” It added that the ship was being transferred to Iranian waters.
Video footage showed troops rappelling and boarding the ship from a helicopter hovering above. A crew member could be heard yelling, “Don't come out!”
The video also showed one special forces unit kneeling and providing covering fire as other troops boarded the ship. MSC said there were 25 crew members on board the ship at the time of the seizure.
Tehran authorities have not yet commented on the seizure.
The vessel is managed by MSC, which leases the vessel from Gotal Shipping, an affiliate of Mr Ofer's Zodiac Maritime.
In response to the attack, Israeli Foreign Minister Yisrael Katz posted on said he had been attacked. Belongs to an EU member state.
US warns of impending attack on Iran
Since 2019, Iranian forces have carried out a series of ship seizures in the region, and the latest attack comes amid heightened tensions between Iran and Israel.
Since the attack on the Iranian consulate in Damascus on April 1, in which a senior Revolutionary Guards commander was killed, Iran has held Israel responsible for the attack and vowed to strike back against Israel.
Israel has declined to comment on the attack, but U.S. officials have repeatedly warned that they expect Iran to attack Israel “sooner or later.”
“We are dedicated to the defense of Israel. We will support Israel,” Biden said. “We will support Israel's defense, but Iran will not succeed.”
An Israeli military spokesperson said on Saturday that Iran “will bear the consequences if it chooses to escalate the situation further.”
Meanwhile, Dutch media reported that KLM Airlines will no longer fly over Iran due to rising tensions in the region.