A cargo ship was set on fire off the southern coast of Yemen after being struck in a missile attack that has prompted US-led naval forces to respond, British maritime agencies reported.

The UK-owned, Palau-flagged ship was en route to Egypt from Thailand, according to maritime security firm Ambrey and ship tracking data.

Islander is the name of the vessel, two shipping sources told Reuters.

US-led coalition forces are responding to the incident, which involved two missiles being fired at the ship some 70 nautical miles southeast of Aden, Yemen, the United Kingdom Maritime Trade Operations (UKMTO) agency said.

Houthis in Yemen have launched repeated drone and missile strikes in the Red Sea, Bab al-Mandab Strait and Gulf of Aden since November.

The Houthis have said they are acting out of support for Palestinians in Gaza.