New Delhi did not give further details on the attack on Wednesday, and the fate of the unnamed ship, nor who it believes was responsible.

"The attack on an Indian-flagged ship off the coast of Oman yesterday is unacceptable, and we deplore the fact that commercial shipping and civilian mariners continue to be targeted," India's foreign ministry said in a statement.

"All Indian crew on board are safe, and we thank the Omani authorities for rescuing them," it added, without giving further details.

Maritime security firm Vanguard named the cargo vessel with 14 crew as the MSV Haji Ali, and said it had reports that it had sunk off the coast of Limah, Oman -- just south of the Strait of Hormuz -- after an explosion.

Vanguard said it was reported to be transporting livestock from Berbera in Somalia's breakaway Somaliland region to Sharjah in the United Arab Emirates, when there was a "suspected explosion believed to have been caused by a drone or missile strike".

It said a "fire reportedly broke out onboard, forcing the crew to abandon ship before the vessel sank".

India's foreign ministry did not immediately respond to request for further information about the vessel.

Iran has largely blocked shipping through the Strait of Hormuz -- which normally carries about one-fifth of the world's oil and LNG shipments in peacetime -- since the outbreak of war with the United States and Israel on February 28.

The United States has imposed its own naval blockade on Iranian ports despite a fragile ceasefire in place since April 8.

Disruptions around Gulf shipping routes and the Strait of Hormuz continue to drive volatility in oil and gas markets, increasing pressure on energy-importing economies, including India.

"India reiterates that targeting commercial shipping and endangering innocent civilian crew members, or otherwise impeding freedom of navigation and commerce, should be avoided," New Delhi added.

India is hosting talks with foreign ministers from the BRICS bloc on Thursday, including Iran's Abbas Araghchi.

Araghchi, speaking in New Delhi, made no mention of the attack, but insisted that the Strait of Hormuz "is open for all" commercial vessels who "cooperate" with its navy.

At least two other Indian-flagged ships have been attacked since the US-Israeli war with Iran erupted on February 28. 

India last month summoned the Iranian envoy to New Delhi and flagged its 'deep concern"over the incidents. 

The Iran war has sharply increased risks for commercial shipping in the Gulf, particularly around the Strait of Hormuz, a vital energy transit route, with multiple vessels attacked or damaged since the conflict began.

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