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The United States military on Tuesday shot down an Iranian drone that it said “aggressively” approached the USS Abraham Lincoln aircraft carrier in the Arabian Sea, sharply escalating tensions at a moment when Washington and Tehran are weighing renewed nuclear talks.

The incident unfolded against a backdrop of mounting pressure from President Donald Trump, who has warned that “bad things” are likely to happen if diplomacy fails, even as US warships move closer to Iran’s coast. News of the shootdown rippled through global markets, sending oil futures up by more than $1 a barrel.

Drone Shot Down as Talks Hang in the Balance

According to the US military, the Iranian Shahed-139 drone was flying toward the carrier with “unclear intent” when it was intercepted and destroyed by an F-35 fighter jet. The jet was launched from the Abraham Lincoln, one of the most powerful symbols of America’s expanding naval presence in the Middle East.

“An F-35C fighter jet from Abraham Lincoln shot down the Iranian drone in self-defense and to protect the aircraft carrier and personnel on board,” said Navy Capt. Tim Hawkins, a spokesperson for US Central Command, as reported by Reuters. He said no American service members were injured and no US equipment was damaged.

Iran Responds Cautiously as Markets React

Iran’s mission to the United Nations declined to comment on the incident. Meanwhile, Iran’s semi-official Tasnim news agency reported that contact had been lost with a drone operating in international waters, but said the cause was not known.

The confrontation comes as diplomats on both sides work to arrange possible nuclear negotiations. Trump has demanded new concessions from Tehran following a violent crackdown on anti-government protests last month — the deadliest internal unrest Iran has seen since its 1979 Islamic Revolution. While the US president stopped short of direct military intervention during the crackdown, he has since ordered a flotilla of warships toward the region, signalling a tougher stance.

Trump said last week that Iran was “seriously talking,” while Ali Larijani, Iran’s top security official, confirmed that arrangements for negotiations were underway.