American sailors are being shown in a new video surrendering, on their knees, to Iranian forces in the Persian Gulf.
Meantime, Iranian television is airing a video (above) showing one of the sailors apologizing for the alleged incursion into Iranian waters.
"It was a mistake that was our fault and we apologize for our mistake," he says, adding Iran's "behavior was fantastic."
The State Department and VP Joe Biden said there has been no official apology from the United States to Iran.
The Pentagon said it is unclear whether the sailor was under pressure to make the apology.
The nine men and one woman were held overnight after Iran claimed they had entered Iranian waters.
Secretary of State John Kerry later thanked the Iranian regime "for their cooperation and quick response," arguing that three or four years ago this type of situation could have played out differently.
"It is clear that today this kind of issue was able to be peacefully resolved. And that is a testament to the critical role that diplomacy plays in keeping our nation safe, secure and strong," he said.
The Outnumbered hosts reacted, viewing this incident as another indication that Tehran does not believe the Obama administration will do anything in response.
Pete Hegseth said Iranian TV is now showing the female sailor wearing a head scarf while in detention "to show America's surrender to Iran."
"Iran is testing and taunting. Iran knows this president is so desperate for a deal that they can get away with anything they want," he argued.
Andrea Tantaros slammed Kerry for thanking the Iranians for "essentially humiliating us." She added that our sailors should have "been at their weapons, not on their hands and knees in submission."
"I just find it to be completely egregious and another failure of the Obama-Jarrett-Rice-Kerry foreign policy, of thanking one of our enemies for basically putting out propaganda that embarrasses the United States of America," said Tantaros, comparing it to the way Ronald Reagan handled the Iranians.
Tantaros said Iran's acts of provocation will continue after this response.
Democrat Julie Roginsky agreed that American sailors were humiliated and Kerry's statement was "beyond the pale."
Watch the full discussion below.