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A ship has been struck by an "unknown projectile" off the Iranian coast, the UK Maritime Trade Organisation has said, amid fears strikes in the Middle East could drive up global oil prices.
The British agency that oversees trade routes said a vessel sailing north of Oman and east of the Strait of Hormuz had been hit but that a fire in the engine room was now under control.
Iran has warned ships not to pass through the strait, a vital waterway in the Gulf, but has not officially closed it - something analysts warn could affect the price of oil and petrol worldwide.
Most international shipping firms have halted operations the strait, which carries about 20% of the world's oil and gas.
While the UKMTO did not identify the vessel that had been hit, unnamed maritime security sources told news agency Reuters that a Marshall Islands-flagged oil tanker had been damaged off the coast of Oman.
Iranian state television said an oil tanker was sinking after it was struck while attempting to "illegally" pass through the Strait of Hormuz. The BBC has not been able to verify this claim.
Iran and Israel have launched fresh aerial attacks on each other on Sunday, after US-Israeli strikes killed Iran's Supreme Leader Ayatollah Ali Khamenei on Saturday and prompted retaliatory strikes on several countries in the Middle East.
Strikes have been reported in Dubai in the UAE, Qatar's capital Doha, Bahrain, and Kuwait.
In the midst of these attacks, dozens of tankers have stopped moving to avoid the strait.
While oil markets will not open until 01:00 GMT, so-called over-the-counter trades between private buyers suggest the price of Brent crude has jumped by around 10% to $80 (£59) a barrel.
The price of Brent crude oil had already risen to $73 per barrel on Friday - its highest since July. Some analysts have warned it could go over $100 in the event of a prolonged conflict.
On Sunday, the Opec+ group of oil producing nations - which includes Saudi Arabia and Russia - agreed to increase their output by 206,000 barrels a day to help cushion any price rises, but some experts doubt this would help much.
Edmund King, president of the AA, warned the disruption could push petrol prices to levels not seen since the pandemic.
In 2022, fuel surged to more than 190p per litre. It currently costs around 133p per litre.
"The turmoil and bombing across the Middle East will surely be a catalyst to disrupt oil distribution globally, which will inevitably lead to price hikes," King told the Times.
"So drivers beware, within the next 10 to 12 days we could be seeing record prices at the pumps."
