Iranian forces took over the Portuguese ship "MCS ARIES" in the Strait of Hormuz on Saturday, according to Israeli media.
The ship is currently sailing through the Persian Gulf, according to ship tracking site, Marine Traffic. The ship was heading in the direction of India.
The MSC Aries is associated with Israeli billionaire Eyal Ofer's Zodiac Maritime Shipping Company, Reuters reported.
There were 20 Filipinos on board the ship.
Iran state-run media stated that its Revolutionary Guards had seized the MSC Aries ship, saying it was "linked to Israel" and it was being transferred to Iran's territorial waters.
A Guards navy special forces helicopter boarded the Portuguese flagged vessel and seized it, the Iranian state-run media reported.
Numerous media outlets cited a video reportedly seen exclusively by the Associated Press showing a helicopter raiding a ship near the Strait of Hormuz on Saturday. A Middle East defense official reportedly told the wire service that Iran is behind the attack.
UKMTO reports incident
The UK Maritime Trade Operations (UKMTO) said on Saturday that a vessel was seized by "regional authorities" 50 nautical miles (92 km) northeast of the United Arab Emirates' Fujairah.
UKMTO did not say which authorities it was referring to, however the two reports share the same location, and there are no other incidents in the area.
A US defense official said "we are aware of the situation reported by UKMTO and we are monitoring it" but would not confirm or deny the name of the vessel when asked if it was the MSC Aries, Reuters reported.
This event comes amid threats of an Iranian attack against Israel, as Israel has been on a high state of alert since late Thursday night. World leaders have been working to avert direct confrontation between the two rival countries.