The Iranian ship, the IRIS Dena, was sunk Wednesday off Sri Lanka's coast in the Indian Ocean. Officials there have dispatched two freezers to store 87 bodies recovered at sea.
Gen. Dan Caine, chairman of the Joint Chiefs of Staff, said the ship was "effectively neutralized" in a Navy "fast attack" using a single Mark 48 torpedo. He added that the U.S. Navy achieved "immediate effect, sending the warship to the bottom of the sea."
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Iran contends the ship was sunk in international waters without warning.
"The U.S. will bitterly regret the precedent it has set," Iranian Foreign Minister Abbas Araqchi said in a post on X.
Iran has asked Sri Lanka to assist with the repatriation of the bodies.
Sri Lankan officials said the Dena was on its way home after taking part in a naval exercise organized by India in the Bay of Bengal from Feb. 18 to 25.
Search and rescue operations would continue for an estimated 10 people who remain unaccounted for, they said.
Editor's note: An earlier version of this article incorrectly stated that US forces had sunk a second Iranian ship off the coast of Sri Lanka.