Suspected rocket attack damages Iranian vessel causing an oil leak off Saudi Arabia's port city of Jeddah.
An Iranian oil tanker in the Red Sea was hit by two suspected rockets on Friday off the coast of Saudi Arabia, raising fears of further escalation in the already-volatile Gulf region.
The National Iranian Tanker Company (NITC) said in a statement the hull of the ship sustained two separate explosions about 100km (60 miles) off the Saudi port city of Jeddah.
It said the blasts - one at 5am local time (02:00 GMT) and the other at 5:30am (02:30 GMT) - were "probably caused by missile strikes". Oil prices spiked 2 percent on the news.
"All the ship's crew are safe and the ship is stable too," said NITC, the tanker's owner, adding those on board were trying to repair the damage.
The state-owned company said contrary to reports, "there is no fire aboard the ship and the ship is completely stable".
"Experts believe it was a terrorist attack," Iran's Students News Agency (ISNA) reported. It did not say whom Iranian officials suspect of launching the missiles.
Leaking oil had been stopped but it restarted once the vessel began moving again.
Iran's foreign ministry confirmed the tanker was hit twice.
"Those behind the attack are responsible for the consequences of this dangerous adventure, including the dangerous environmental pollution caused," Foreign Ministry spokesman Abbas Mousavi told state TV.
There was no immediate acknowledgement from Saudi Arabia about the blasts. Russia's foreign ministry said it was too early to assign blame for the explosions.
Images of the oil tanker, identified as the Sabiti, circulated on Twitter, but Al Jazeera was not able to verify their authenticity.