US says forces boarded tanker carrying Iranian oil

The US Defense Department said Thursday its forces boarded a vessel in the Indian Ocean that was transporting oil from Iran, as disruption from a stand-off with the Islamic republic continued to batter the world economy.

The announcement came hours after a senior Iranian official said the country had banked the first proceeds from tolls it is exacting on shipping through the Strait of Hormuz, a waterway that has become the focal point of the confrontation with the United States.

With planned peace talks hanging in the balance, more fuel-hungry airlines cancelled flights, oil prices opened higher and the keenly-watched S&P Global PMI index showed eurozone business activity shrinking for the first time in 16 months.

Reporting by AFP