In a dramatic turn of events, Iran has seized the Marshall Islands-flagged oil tanker, St Nikolas, in the Gulf of Oman, escalating tensions in the strategically vital region.

The vessel, en route from the Iraqi port of Basra to Turkey, was reportedly boarded by armed men wearing masks near the Omani port of Sohar at 03:30 GMT.

According to reports from the UK Maritime Trade Operations, the unauthorized individuals, dressed in military-style black uniforms with masks, ordered the St Nikolas to sail to an Iranian port.

Communications with the vessel were lost, prompting authorities to launch an immediate investigation into the incident.

Iranian state media, quoting the navy, claimed that the seizure was a direct response to the confiscation of the ship and its oil cargo by the United States last year.

The St Nikolas, previously known as the Suez Rajan, was seized by the US in April as part of sanctions enforcement against Iran. The company managing the vessel, Empire Navigation, revealed that it was loaded with 145,000 tonnes of crude oil and carried a crew consisting of 18 Filipinos and one Greek citizen.

Despite Iranian claimed that the vessel is American, it is, in fact, Greek-owned. The United States has swiftly condemned the seizure, calling for the immediate release of the ship and its crew. US State Department spokesman Vedant Patel denounced the action as the latest attempt by Iran to disrupt international commerce.

"We believe this kind of action will simply add uncertainty for commercial shipping and for regional and global economies," Patel stated, underscoring the potential economic repercussions of the incident.