The U.K. Maritime Trade Operations agency said an explosion “in close proximity of the vessel” damaged it. The crew abandoned ship and is safe, the agency added.

The Belize-flagged, Lebanese-operated cargo ship was traveling through the Bab el-Mandeb Strait on its way to Bulgaria after leaving the United Arab Emirates, according to private security firm Ambrey, the Associated Press reported.

The Houthis said they also shot down a U.S. MQ-9 Reaper drone near Yemen’s port city of Al Hudaydah. U.S. authorities have not confirmed the claim.

Tensions in the Gulf have escalated since October 7, when Hamas launched a mass attack on Israel, killing around 1,200 people and kidnapping at least 250. Israel responded with a military assault on Gaza, where the death toll has surpassed 28,000 people, according to the Gazan health ministry.

The Houthi rebels have launched more than 30 attacks on commercial and naval vessels in the Red Sea since mid-November.

In retaliation, U.K. and U.S. military have been carrying out targeted air and missile strikes against the Iran-backed militants. The EU is also planning a defensive mission in the region.