The attack on the Mercer Street is the first known fatal strike on commercial shipping in the region after years of tensions over the tattered nuclear deal between western nations and Iran.
Revolutionary Guard Corps' seizure of MT Hankuk Chemi in Gulf waters comes at a time of tension between Tehran and Seoul over Iranian funds frozen in South Korean banks.
The ship had sailed from the port of Sharjah in the United Arab Emirates and was heading to Benghazi in Libya, the EU military mission said, adding that its cargo of fuel was "likely to be used for military purposes".
Sri Lanka's navy said rescuers were still spraying foam on the vessel while the Indian Coast Guard said there was no oil slick.
Coastal police with tugboats prevent maritime accident by taking control of drifting Greek-registered oil tanker that suffered engine failure on its way to Black Sea.
A gas tanker exploded at a ceramics factory in Khartoum on Tuesday, killing at least 23 people and injuring 45 more.
The tanker truck exploded overnight as crowds tried to collect spilt fuel in Niger's capital Niamey, authorities and witnesses said on Monday.
The Iranian-managed oil tanker, collided with a grain-carrying freighter on Saturday and has been ablaze ever since.
The oil tanker flipped over and burst into flames on the main highway near the city of Bahawalpur. A large crowd of people gathered, many to collect leaking fuel, when the tanker exploded in a huge fireball.
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