According to the group behind the mission, a vessel was struck by a drone in international waters near Malta to provide humanitarian assistance to Gaza.
The fire broke out after the attack, but later placed under control, authorities confirmed.
The ship, named Conscience, carried 12 crew members and four civilians when the incident occurred about 26 km from the Maltese coast.
Maltese government said nearby tugs responded to the call of pain, but people on board chose not to abandon the ship. No injuries were reported and all aircraft were confirmed to be safe.
The Union of Freedom Fleets, which organized the cargo, accused Israel of carrying out the attack.
Although no direct evidence linking Israel to the incident was provided, they released a video where they could hear the explosion and another video showing flames involving parts of the ship.
The Israeli military has not responded to requests for comment.
The attack comes amid the worsening humanitarian crisis in Gaza, which has been completely locked down since March and has stopped imports of all, including food and medicine.
Israel says the lockdown is intended to put pressure on Hamas to release hostages that have still been held since the invasion of Israel on October 7, 2023.
The Freedom Flotilla Coalition said a strike against conscience appeared to target the generator, creating a major violation of the hull, knocking out the ship’s power and putting it at risk of sinking.
Longtime member of the group, Charlie Andreason told The Associated Press that he spoke to people who reported hearing two explosions before the fire broke out. Photos released by Cypriot authorities showed visible damage to the ship.
Marine Traffic, a vessel tracking platform, indicated that conscience had departed the port of Visate in Tunisia on Tuesday and had entered the area where the attack occurred by Thursday morning. Organizers said the ship was attacked shortly after midnight on Friday.
The incident mirrors a fatal 2010 attack on the Turkish ship Mabi Marmara, part of a previous Gaza-bound aid fleet in which Israeli forces killed nine activists after Israeli forces raided the ship.
Humanitarian crisis
Meanwhile, aid agencies have issued warnings about the rapidly worsening situation in Gaza. The International Red Cross Committee warned on Friday that humanitarian operations could collapse without an immediate resumption of aid delivery.
The risky program includes a communal kitchen that provides many residents with the only meal of the day.
“Aidance must be permitted to enter Gaza. Hostages must be released. Civilians must be protected,” the ICRC said.
“Without immediate action, Gaza will fall into the confusion that no further humanitarian efforts will be mitigated,” the group added.
The war began on October 7, 2023, when Hamas militants attacked southern Israel, killing about 1,200 people.
Hamas took 251 people as hostages and currently has 59 people, of which 24 are thought to be alive.
Subsequent Israeli attacks killed 52,400 Palestinians, mostly women and children, according to the Gaza Health Ministry run by Hamas, which does not distinguish fighter jets and civilians.
The Israeli army says 850 of its soldiers have died since the start of the war.
