Trump said US destroyer USS Spruance fired on Iranian ship TOUSKA in Gulf of Oman after it attempted to breach a blockade.
U.S. Marines took custody of the vessel, which remains under U.S. sanctions for prior illegal activity, according to Trump.
Iran rejected a second round of talks, accusing the U.S. of excessive demands and warning of a possible surprise attack.
Trump announced a U.S. delegation, led by Vice President JD Vance, will travel to Islamabad for next round of negotiations.