U.S. crude futures rose as much as 3 percent in early trading on Friday after renewed hostilities broke out between the US and Iran.

West Texas Intermediate oil prices initially gained more than 3 percent and were trading up 2.50 percent or $2.37, at $97.18 a barrel, as of 2215 GMT.

President Donald Trump has said that US forces dealt "great damage" to Iranian targets after three American naval destroyers came under fire, but was nonetheless still open to a deal with Tehran.

"There was no damage done to the three Destroyers, but great damage done to the Iranian attackers," he said on his Truth Social platform, colorfully describing drones falling "like a butterfly dropping to its grave!"

"We'll knock them out a lot harder, and a lot more violently, in the future, if they don't get their Deal signed, FAST!" he added.

Earlier, Trump told ABC News that the ceasefire with Iran remained in place despite new attacks.

Around 1,500 ships and their crews are trapped in the Gulf due to the Iranian blockade in the Strait of Hormuz, the UN's International Maritime Organization (IMO) chief has said in Panama.

"Right now, we have approximately 20,000 crewmen and around 1,500 ships trapped," IMO secretary-general Arsenio Dominguez told the Maritime Convention of the Americas.

Dominguez said that maritime shipping moves over 80 percent of total consumed products in the world.

Iran has accused US of violating a ceasefire by targeting two ships at the Strait of Hormuz and attacking civilian areas, the country's top joint military command said.

The US targeted "an Iranian oil tanker traveling from Iran's coastal waters near Jask toward the Strait of Hormuz, as well as another vessel entering the Strait of Hormuz near the Emirati port of Fujairah," a spokesperson for Iran's Khatam al-Anbiya Central Headquarters said in a statement carried by state media.

"At the same time, with the cooperation of some regional countries, they carried out air attacks on civilian areas along the coasts of Bandar Khamir, Sirik, and Qeshm Island."

The United States has struck Iranian military targets after Tehran's forces attacked three American destroyers that were transiting the Strait of Hormuz, the US military has claimed.

"Iranian forces launched multiple missiles, drones and small boats" at the three warships, but none were hit, the US military's Central Command said in a post on X.

US forces "eliminated inbound threats and targeted Iranian military facilities responsible" for the attack, it added.

Lula da Silva says Brazil and Türkiye had persuaded Iran to accept a revised nuclear non-proliferation deal, but then US president Obama and EU instead chose to ramp up pressure on Tehran.

Iranian media says Tehran struck US forces after what it described as an attack on Iranian tanker. Meanwhile, Fox News claims US military attacked Iran’s Qeshm port and Bandar Abbas.

Several explosion-like sounds have been heard near Bandar Abbas and Qeshm Island, according to. reports from Iranian media.

Semi-official Fars News Agency reported that residents in the area heard multiple blasts near Bandar Abbas, adding parts of Bahman Pier may have been struck during an exchange involving Iranian forces and “enemy forces.”

The Tasnim news agency confirmed explosions in the region, suggesting they could be linked to IRGC Navy warning vessels operating in the Strait of Hormuz.

Separately, Iran’s state broadcaster IRIB reported a blast at a pier on Qeshm Island, saying the incident is still under investigation.

The US envoy to the UN argued that Iranian actions in the Strait of Hormuz violate "the most basic law of the sea," noting that it sets a "very, very dangerous precedent."

At a joint news conference with the representatives of Bahrain, the United Arab Emirates, Qatar, Kuwait and Saudi Arabia, Mike Waltz said a draft resolution announced earlier this week on the Strait of Hormuz focuses on the "freedom of navigation for the entire world's economies."

Iran’s Foreign Ministry spokesperson has said that Supreme Leader Mojtaba Khamenei maintains full oversight over all state affairs, according to Nournews.

The spokesperson added that all developments in the country are being managed under his direct supervision, stressing that no decisions are taken without his approval.