The UK Maritime Trade Office (UKMTO) reported that the large explosion occurred 30 nautical miles (56km) southeast of Kuwait's Mubarak Al Kabeer port in the Persian Gulf.
Oil flowing from the tanker may cause some environmental impacts; the ship has been waterlogged, there are no fire reports and crew safety" - the statement stated.
The Kuwaiti Ministry of Interior then informed that the oil tanker explosion occurred outside the country's territorial waters.
The oil tanker explosion occurred in the context of the US sinking an Iranian warship off Sri Lanka and NATO shooting down an Iranian missile heading towards Turkey.
On March 4, a US submarine sank an Iranian warship off Sri Lanka. This is the first time a US submarine has sunk another warship since World War 2.
A Sri Lankan official confirmed that the attacked ship was the IRIS destroyer Dena on its way from eastern India back to Iran. Authorities said 32 people were rescued, 87 bodies were found and about 60 others are missing.
The US Central Command said it has hit or sunk more than 20 Iranian ships, including a warship sunk off Sri Lanka.
Meanwhile, NATO's air defense system destroyed an Iranian ballistic missile fired at Turkey. The missile launch was the first time Turkey - a country bordering Iran and having the second largest military in NATO - was drawn into the conflict.
These developments take place in the context of fighting that paralyzes transportation through the Strait of Hormuz for many consecutive days, disrupting important oil and gas flows from the Middle East.
US President Donald Trump has pledged to provide insurance and naval escort for energy export ships from the region to curb the soaring costs.
However, according to Reuters estimates, at least 200 ships are still anchored offshore.