The fire broke out after the ship was hit by a missile, the seafarers' union in India told CBS News.
This was later confirmed by the U.S. regional military command CENTCOM, which said in a statement that an American fighter jet fired on the ship to stop it.
The Palau-flagged ship Marivex had been unloaded but was en route to an Iranian port, according to CENTCOM.
The ship, previously named Arihant, is subject to sanctions by the United States due to alleged links to Iran, according to CBS.
The U.S. is blocking Iranian ports and, during the ongoing ceasefire with Iran, has previously both shelled and redirected merchant ships in the area.
