Fox News strategic analyst Lt. Col. Ralph Peters reacted this afternoon on FBN to the latest provocation by Iran toward the U.S. Navy.

Fox News has confirmed that a U.S. Navy ship fired warning shots at an Iranian vessel that came within 200 yards in the northern Persian Gulf.

Pentagon producer Lucas Tomlinson reports that the incident Wednesday involved a USS Squall (PC7), which is a U.S. Navy coastal patrol ship.

This is the second confirmed incident in two days involving Iranian vessels and U.S. ships in the Persian Gulf.

On Tuesday, a U.S. destroyer was harassed by Iranian boats, forcing the American ship to fire flares into the air.

Peters said right now, the Iranians believe they can do "virtually anything they want" in Iraq, Syria and the Persian Gulf. 

He said Tehran thinks that no matter what they do, President Obama will "always cut them the slack" to preserve the nuclear deal. 

"There's also another factor. They're playing to the audience in the Persian Gulf and beyond, trying to show that the Americans aren't serious, they're on the retreat, they're losing," he explained on The Intelligence Report.

He said that the danger is that one of these incidents turning into a deadly confrontation. In that scenario, he said that he worries about U.S. forces being hindered by rules of engagement from the Pentagon.

"We've got vastly better weapons, but the Iranians don't have to go back all the way to Tehran to defend themselves," he said.

Watch the full segment above.

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