Iran has warned that one of its oil tankers has been hit by two rockets near the city of Jeddah.

The Iranian state news agency ISNA the ‘Sabity’ tanker had been extensively damaged in the explosion around 96km from the port.

It said the vessel, owned by the National Iranian Oil Company (NIOC), was now spilling oil into the Red Sea.

Local news is reporting that two missiles hit the ship. The crew on board are believed to be safe.

The attack follows a diplomatic dispute between Iran, the UK and the US over tankers in the Gulf.

In June, the US accused the Iran of attacking two tankers in the area.

British Royal Marines later detained an Iranian tanker off the coast of Gibraltar accusing it transporting oil to Syria in a breach of international sanctions.

In July, Iran seized a British-flagged oil tanker over alleged marine violations.

The oil tanker disputes were followed by an air strike against Saudi Arabia's oil faculties in September.

Houthi rebels in Yemen later claimed responsibility for the attack, which impacted 5% of the world's energy supply.

Saudi Arabia has publicly accused Iran of being behind it.

Main image shows the port of Jeddah in Iran. Image: Wiki