An American cargo ship under contract to the US navy has opened fire in the Suez Canal after being approached by a small Egyptian boat.
The Egyptian authorities said a least one man was killed and two others injured in the incident on Tuesday, but the US military said an investigation was under way and that it had no reports of casualties.
The small vessel had been trying to sell goods to ships passing through the Suez, the Egyptian sources said.
The US Navy said the Global Patriot, on short-term charter to the military, fired warning shots near the boat after it ignored verbal orders and a signal flare telling it to stay away.
A statement issued by the navy said: "Global Patriot was approached by several boats while preparing to transit the Suez Canal.
"The boats were hailed and warned by a native Arabic speaker on the Global Patriot to advise them to turn away... One small boat continued to approach the ship and received two sets of warning shots 20-30 metres in front of the boat's bow."
Casualties
The US navy statement said that there were no reports of casualties and that all shots fired were accounted for.
However, Egyptian security officials said Mohammed Fouad Afifi Gaafer, an Egyptian trader, was killed by bullets fired by the Global Patriot and was buried after local authorities turned the body over to his family.
The US ship had been waiting to pass through the Suez Canal from the Red Sea to the Mediterranean.
Egyptian officials said that the ship continued its journey through the canal and was expected to arrive at Port Said near the Mediterranean by nightfall.
The US navy contracted the ship in February to carry military goods to locations including some in the Gulf, Reuters news agency reported, citing a military spokesman.
The Suez Canal is an important source of foreign currency for Egypt, and about 7.5 per cent of world sea trade passes through it.