According to US sources, the bulk ship True Confidence, owned by Liberia and flying the Barbados flag, was attacked in the Gulf of Aden, killing at least three persons.
The Indian navy is seen in footage pulling servicemen to safety after the attack on Wednesday at around 11.30 a.m. local time.
A life raft was observed providing assistance to sailors who had abandoned their ship.
Later, crew members could be seen receiving medical attention from emergency personnel.
The Houthis, who say their goal is to end Israel’s war on Hamas in the Gaza Strip, started attacking ships in and around the Red Sea in October.
There will be a reaction to the attack, the White House has warned.