The Qatar-owned Al Rekayyat sent out distress signals overnight after it was apparently hit on its port side, sparking an engine room blaze, according to a Reuters news agency source.
Another was said to have recognised the risk of explosion after being briefed on the nature of the incident.
It was understood the crew was safely evacuated and that a US official, along with Qatar’s foreign ministry, had accused Iran of firing at two ships.
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A Saudi-flagged oil tanker also suffered damage, according to Reuters sources.
They said both ships were near the crucial Strait of Hormuz shipping lanes, which Iran is still looking to control amid its fragile ceasefire with the United States.
The Al Rekayyat was said to be fully loaded with liquefied natural gas.
A recorded radio call, reviewed by Reuters, suggested her captain requested assistance soon after the fire broke out.
“Mayday mayday mayday. This is vessel Al Rekayyat, LNG vessel Al Rekayyat. We are being hit by drone on port side, top of engine room,” they were reported as saying.
“Status: engine room fire and full of smoke. Unable to assess further damage.”
Nations which rely on imports of LNG for their energy security suffered spikes in wholesale costs in the wake of the incident.
UK and European natural gas contracts for future delivery rose more than 5%, leaving average prices still 35% above levels seen 12 months earlier but still 8% lower on where they stood a month ago.
Energy prices have fallen sharply on peaks seen in April as releases of global oil and gas stockpiles have helped offset the loss of supplies from the Middle East.
The strait usually handles about 20% of demand.
There has been a resumption of some traffic through the strait – largely on the Oman side of the lanes – since late last month amid the ceasefire extension between Washington and Tehran.
Volumes, however, are still well short of pre-war levels and they could take many months, perhaps years, to recover due to heavy damage inflicted on Gulf states’ energy infrastructure through Iranian drone and missile strikes.
The incident early on Tuesday risked a setback for calmer energy prices.
Susannah Streeter, chief investment strategist at Wealth Club, said it raised “fresh concerns about whether the Iran-US agreement to keep the strait open will hold”, at a time when Iran is demanding the right to charge tolls for ships using the waterway – a move that would be illegal under international law.
It marked the first time an LNG ship from Qatar, a mediator in the talks between the US and Iran, is believed to have been struck since the start of the war at the end of February.
Al Rekayyat is owned and managed by Qatar Gas Transport Company.
The other vessel to have damage is believed to be the oil tanker Wedyan – owned and managed by Saudi shipping firm Bahri.
The companies involved were yet to comment while Iran was yet to comment.
