Iran has rejected Israeli accusations that it was involved in the attack, calling the allegations "baseless" and an attempt by Israel to "divert attention from facts".
Iran says its navy warned US vessels to stop "provocative and aimless shooting".
Confrontation comes amid talks in Vienna between Iran and major powers on the mechanics of a US return to a landmark 2015 nuclear deal abandoned by then-president Donald Trump.
Plagued with every flaw a warship could face, it is difficult to see how the Littoral combat ship was supposed to redefine the US naval standoff with China.
Moscow has increased its military activities in their far north region, testing weapons with nuclear capabilities. Meanwhile, climate change continues to melt the walls of ice and the natural defences of the Russian north.
US military says it has already tested unloading and shipping cargo overland from the country's port at Yanbu, a crucial terminal for oil pipelines in the kingdom.
The Turkish announcement came in the heat of an escalating row over maritime borders and rights to large natural gas reserves in the eastern Mediterranean.
The fire was first reported in a lower cargo area where seafaring tanks and landing craft are parked; the exact cause remains unknown.
Japan has activated amphibious troops, in a first since World War Two, to defend its remote islands against any external threat.
Japanese media says the bodies were inside flooded compartments. At least three people were evacuated to the US Naval Hospital in Yokosuka in Japan, including the ship's commanding officer.
The Navy's 7th Fleet said on its Facebook page that the number of injuries was still being determined but a US official later confirmed seven were missing and two injured, including the ship's commander.
A drinking ban has been imposed to control soldiers after a series of incidents took place where US soldiers misbehaved with locals.
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