Where were the sailors detained?

In a story in the NYT today, the headline reads "Iran Detains British Sailors in Iraq." When you read further into the story, however, you find:

The sailors were from the H.M.S. Cornwall, a British Type 22 frigate. Commodore Nick Lambert, the Cornwall’s commanding officer, told the B.B.C. that he hoped the incident was the result of a “simple misunderstanding at the tactical level.” The waters separating Iran and Iraq have long been the subject of bitter territorial disputes between the two countries.

“There is absolutely no doubt in my mind that they were in Iraqi territorial waters,” Commodore Lambert said of the British sailors. “Equally, the Iranians may claim they were in Iranian waters.”

So, there are three alternative possibilities:

1) The vessel was in Iran's territorial waters.
2) The vessel was in Iraq's territorial waters.
3) The vessel was in disputed territorial waters.

Given that the NYT seemingly has no evidence (if they do, they didn't reveal it) as to which of these three stories is true, it is remarkable that the headline assumes that the sailors were in fact detained in Iraqi waters. What were they thinking?

UPDATE: The Washington Post makes the same error. Bizarre.