Iran’s state-run news agency said in a statement released early Friday that one of their oil tankers was hit by an explosive while off the coast of Saudi Arabia.

The agency claimed the explosion had set the oil tanker on fire near the Saudi port city of Jeddah in what they called a “terrorist attack.”

The vessel belonged to the National Iranian Oil Company and the explosion caused heavy damage that sent oil spilling in the Red Sea, they said.

Tensions have been simmering in the region since an attack on Saudi Arabian oil facilities last month.

The US has responded by deploying “defensive” troops to Saudi Arabia to protect against any possible threat from Iran.

“The Iranian regime is waging a deliberate campaign to destabilize the Middle East and impose costs on the international economy,” Secretary of Defense Mark Esper said, while announcing the deployment in Sept.

“The attack on September 14th against Saudi Arabian oil facilities represents a dramatic escalation of Iranian aggression.”

Iran has denied involvement in the attack, claiming it was a “legitimate defense” from Iranian-backed Houthi rebels in Yemen.