At 01.01 hours on 3 June 1941 the Inversuir, dispersed on 1 June from convoy OB-327 in 52°42N/22°18W, was hit in the foreship by one torpedo from U-48 (Schultze) north of the Azores in 48°28N/28°20W. The ship stopped and developed a heavy list to port after being hit amidships by a coup de grâce at 01.11 hours. The U-boat then fired 51 rounds from the deck gun and set the tanker on fire. At 03.59 hours, a second coup de grâce hit her in the bow and she was left in a sinking condition.
The wreck of Inversuir was finally sunk by U-75 with two coups de grâce fired at 20.33 and 20.51 hours.

The master and 23 crew members from the Inversuir (Master Robert Charles Loraine) were picked up by the Norwegian steam merchant Para, transferred to the British ocean boarding vessel HMS Corinthian (F 103) (Cdr E.J.R. Pollitt) and landed at Greenock on 21 June. Nine crew members were picked up by HMS Wanderer (D 74) (Cdr A.F.St.G. Orpen, RN) and landed at Holyhead. The remaining 12 crew members were rescued by an unknown ship and landed at Quebec.