The Stena Impero was seized by the Iranian Revolutionary Guard on Friday in a key waterway in the Gulf. The tanker was surrounded by four vessels and a helicopter before heading into Iranian waters, Mr Hunt said.
"We are not looking at military options," he said. "We are looking at a diplomatic way to resolve this situation."
A senior Iranian diplomat was summoned to the Foreign Office in London following the ship's seizure.
Mr Hunt confirmed he had spoken to Iranian Foreign Minister Mohammad Javad Zarif on Saturday afternoon.
He said he expressed "extreme disappointment that having assured me last Saturday Iran wanted to de-escalate the situation they have behaved in the opposite way."
He also tweeted: "Yesterday's action in Gulf shows worrying signs Iran may be choosing a dangerous path of illegal and destabilising behaviour after Gibraltar's legal detention of oil bound for Syria."
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