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Iran's Islamic Revolutionary Guard Corps Navy seized the Israel-linked MSC ARIES container ship near the Strait of Hormuz on Saturday, The Times of Israel reported, citing Iranian news agency.
The ship in question was the Portuguese-flagged MSC Aries, a container ship owned by Zodiac Maritime, based in London. Zodiac Maritime is a division of Zodiac Group, owned by Israeli billionaire Eyal Ofer.
The MSC Aries was last seen on Friday, sailing towards the Strait of Hormuz off the coast of Dubai, according to The Times of Israel.
The ship is currently sailing through the Persian Gulf, according to ship tracking site, Marine Traffic.
Tensions escalated between Iran and the West amid the ongoing war between Israel and Hamas.
Amid fears of the ongoing hostilities in Gaza devolving into a larger Middle-Eastern conflict, US President Joe Biden said earlier today that he expects Iran to attack Israel 'sooner than later'.
"I don't want to get into secure information but my expectation is sooner than later," Biden told reporters when asked how imminent an Iranian attack on Israel would be.
As has been reported globally, Tehran vowed revenge after Israel launched airstrikes on the Iranian embassy in the Syrian capital, Damascus, taking out three top military generals.
The US has been on high alert for a significant Iranian retaliatory attack on Israel in recent days, as fears grow of a wider regional war.
There remains a "real, credible and viable" threat of Iran launching strikes, the White House said on Friday, following Israel's attack on an Iranian diplomatic compound in Syria last week, killing three Iranian generals.
Biden, who warned this week that Iran was threatening a 'significant attack' on Israel, has been receiving constant updates on the situation from his national security team.
The US and several other countries, including India, Britain and France, issued new travel guidelines for government employees in Israel as the Iranian threat loomed.
"In view of the prevailing situation in the region, all Indians are advised not to travel to Iran or Israel until further notice. All those who are currently residing in Iran or Israel are requested to get in touch with Indian embassies there and register themselves," the ministry of external affairs stated in an official release.
"We're watching this very, very closely," said John Kirby, the US National Security Council spokesman, who declined to provide information about the expected timing of the threat.