Two missiles have struck an Iran-owned oil tanker, setting it ablaze off the Saudi port of Jeddah, according to Iranian state TV.

Key points: The tanker suffered significant damage, including two storerooms aboard

The tanker suffered significant damage, including two storerooms aboard The explosion caused an oil leak in the Red Sea

The explosion caused an oil leak in the Red Sea The explosion could increase hostilities between Iran and the US

Iranian state news agency IRNA reported the subsequent oil leak in the Red Sea is now under control.

The tanker suffered heavy damage and was leaking crude oil about 96 kilometres from Jeddah port, Iranian media had reported.

The National Iranian Tanker Company (NITC), which owns the ship, said the hull of the Sabiti was hit by two separate explosions off the Saudi coast.

"All the ship's crew are safe and the ship is stable too," NITC said, adding those on board were trying to repair the damage.

Iranian state television said the explosion damaged two storerooms.

Lieutenant Pete Pagano, a spokesman for the US Navy's 5th Fleet overseeing the Middle East, said authorities there were "aware of reports of this incident", but declined to comment further.

There has been no immediate word from Saudi Arabia on the reported blast.

News of the explosion caused the price of Brent crude oil to spike by over 2 per cent.

Blast comes amid Middle East energy tensions

The reported explosion comes after the US recently alleged that Iran attacked oil tankers near the Strait of Hormuz at the mouth of the Persian Gulf — accusations Tehran has denied.

The latest explosion could further escalate tensions between Iran and the US, more than a year after President Donald Trump unilaterally withdrew America from the nuclear deal and imposed sanctions now crushing Iran's economy.

The mysterious attacks on oil tankers near the Strait of Hormuz, Iran shooting down a US military surveillance drone and other incidents across the wider Middle East followed Mr Trump's decision.

The latest assault saw Saudi Arabia's oil industry come under a drone-and-cruise-missile attack, halving the country's output.

The US has blamed Iran for the attack as Tehran maintained that it had no involvement.

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