Iranian officials said two rockets struck the tanker.
The tanker, which is owned by the National Iranian Oil Company, suffered serious damage, the semi-official ISNA news agency, reported, according to Reuters. The tanker is located on the Red Sea near the port in Jeddah.
There was no immediate acknowledgment from the kingdom of this amid heightened tensions across the Middle East.
The state-run IRNA news agency and other Iranian media relied on an online report, while the semi-official ISNA news agency quoted an anonymous source with direct knowledge.
Lt. Pete Pagano, a spokesman for the U.S. Navy’s 5th Fleet overseeing the Mideast, said authorities there were “aware of reports of this incident,” but declined to comment further.
The reported explosion comes after the U.S. has alleged that Iran attacked oil tankers near the Strait of Hormuz, something denied by Tehran.
Fox News’ Edmund DeMarche and the Associated Press contributed to this report