A wooden dhow, carrying cargo and a crew of 18 Indians, caught fire and capsized near the Strait of Hormuz on Friday, leaving one person dead and four others suffering from burn injuries. A vessel passing by has rescued the survivors.

According to local media outlets, the injured have been transferred to Dubai for medical treatment after officials from the Indian consulate met the rescued Indian nationals late Friday night.

The Indian consulate has also connected with the Dhow owner to “extend all possible assistance”.

The development comes amid rising tensions between the US and Iran over efforts to gain control of the narrow waterway. Recent days have seen the biggest flare-ups in fighting in and around the Strait of Hormuz since a ceasefire began a month ago, and the United Arab Emirates came under renewed attack on Friday.

US forces have fired on and disabled two Iranian oil tankers after exchanging fire with Iranian forces in the Strait of Hormuz overnight. The United Arab Emirates, meanwhile, reported another Iranian missile and drone attack.

The attacks on Friday cast more doubt on a tenuous month-old ceasefire that the US insists is still in effect. Washington is awaiting an Iranian response to its latest proposal for a deal to end the war, reopen the strait and roll back Tehran's disputed nuclear program.

US secretary of state Marco Rubio said he hopes to receive "a serious offer" from Iran.

Washington is awaiting Tehran's response to a US proposal that would formally end the war before talks on more contentious issues, including Iran's nuclear programme.