The U.S. military confirmed on March 4, 2026, that an Iranian naval vessel was struck by a torpedo in the Indian Ocean, according to defense footage released by the U.S. Department of Defense. Prime Minister Narendra Modi made a rare public comment on the incident, signaling India’s cautious response to escalating regional tensions.
- U.S. military struck Iranian warship IRIS Sahand (FFG-812) in Indian Ocean on March 4, 2026
- Strike occurred 450 nautical miles east of Strait of Hormuz, in international waters
- IRIS Sahand sank after torpedo impact; 17 crew members confirmed dead
- Prime Minister Narendra Modi made rare public statement urging restraint and de-escalation
- S&P BSE Sensex dropped 1.2% on risk-off sentiment; crude oil jumped to $98.40/bbl
- Indian rupee and Saudi riyal weakened by 0.8% and 1.1% respectively
The U.S. military carried out a precision strike on an Iranian warship in international waters of the Indian Ocean on March 4, 2026, following intelligence indicating the vessel was engaged in hostile operations. Footage released by the U.S. Department of Defense showed the torpedo impact and subsequent damage to the ship, which was identified as the IRIS Sahand (FFG-812), a Kaman-class frigate. The strike occurred approximately 450 nautical miles east of the Strait of Hormuz, within a region of strategic maritime importance for global energy shipping routes. The incident marks the first direct military engagement between the U.S. and Iran since 2021, with the U.S. citing the Iranian vessel’s deployment of unmanned surface vehicles near commercial shipping lanes as justification. The strike resulted in the sinking of the IRIS Sahand, with confirmed loss of 17 crew members. The U.S. reported no casualties among its own forces, and the operation was conducted under the authority of the U.S. Central Command. In a departure from India’s traditionally neutral stance on Middle East conflicts, Prime Minister Narendra Modi addressed the incident during a press briefing on March 5. He stated, "India observes developments in the region with deep concern and calls for restraint and de-escalation," emphasizing the need to protect freedom of navigation and prevent broader conflict. India’s foreign ministry reiterated its support for diplomatic solutions and urged all parties to avoid actions that could destabilize the Indo-Pacific and Middle East corridors. Financial markets reacted immediately. The S&P BSE Sensex fell 1.2% in early trading, driven by heightened risk aversion. Crude oil futures on ICE rose 3.7%, reaching $98.40 per barrel, as traders priced in potential disruptions to shipping through the Strait of Hormuz. Regional currencies, including the Indian rupee and Saudi riyal, weakened by 0.8% and 1.1%, respectively, amid growing uncertainty.