Iranian Navy intercepted an oil tanker carrying 24 Indian crew members headed for the US off the coast of Oman.
The ship's Turkish owner, Advantage Tankers, claims the crew members are in "no danger."
The Iranian Navy was escorting the ship to a port due to an "international dispute."
The tanker collided with an Iranian Navy vessel, killing two of its crew members and injuring several more.
The US Navy ordered the immediate release of the ship in response to Iran's "continued harassment" in the Gulf seas.
Advantage Sweet was the name of the ship, and its final destination was Houston, Texas.
This was at least Tehran's fifth commercial vessel seizure in the last two years, according to the 5th Fleet.
Confiscation followed sanctions against Iran's Revolutionary Guard Corps by US, UK, and EU on April 24 due to alleged human rights violations by Tehran.