US-contracted ship fires on Iranian boat: report

US military personnel aboard a cargo ship traveling into the Persian Gulf fired nearly a dozen warning shots at Iranian speed-boats Thursday, according to several breaking news reports.

Reports of the incident prompted a nearly immediate spike in oil prices, which jumped $3 per barrel.

The ship was contracted by the U.S Military Sealift Command, which delivers supplies to US troops overseas. The showdown involved a cargo ship known as Westward Venture and several Iranian speedboats, reported MSNBC's Jim Miklaszewski.

"Since it is chartered by the US military it then essentially becomes a US military vessel, with the necessary armaments on board to protect the cargo and the crew on board," he reported.

The cargo ship apparently was sailing into the Strait of Hormuz, site of a showdown between US Navy warships and Iranian speedboats in January. Raw Story