Vessels in the Strait of Hormuz are visible near the beach of Bandar Abbas, Iran. [Photo Credit: Reuters]

Oil prices were trading nearly 2% higher on Monday after the U.S. attacked ‌an Iranian island in the Strait of Hormuz and drew retaliation from Tehran, as their conflict extended into its sixth month.

Brent crude futures climbed $1.77, or 2%, to $89.87 a barrel by 0733 GMT while U.S. West Texas Intermediate crude was at $84.85, up $1.45, or 1.74%.

U.S. forces ​struck two launchers on Iran’s Larak Island in the Strait of Hormuz on Sunday, the first known American ​strikes on the country since late July.

In response, Iran attacked two U.S. air bases in ⁠Jordan, Iranian media reported on Monday, citing Iran’s Revolutionary Guards.

U.S. President Donald Trump said in a brief social media post ​on Sunday that Iran’s energy hub of Kharg Island was being “blown to smithereens”, but there was no evidence that ​the island was under attack and the post, accompanied by an AI-generated clip, contained no further details. Iran denied the attack on the island, adding that oil operations continued.

Negotiations to end the conflict are at an impasse while mediators work to reopen the Strait of ​Hormuz, through which a fifth of the world’s oil flowed before the war began at the end of ​February.

The number of ⁠visible commodity vessels that sailed through the strait over the weekend dropped to five a day, shipping data showed on Monday, reflecting caution among companies wary of attacks on ships.

The ​United Kingdom Maritime Trade Operations reported on Sunday that a tanker was struck by ​a projectile while ⁠sailing inbound through the strait on Saturday.

U.S. Treasury Secretary Scott Bessent told Reuters on Sunday that the U.S. is likely to issue new secondary sanctions weekly on Iran.

Brent and WTI are set to post small declines in August after falling more ⁠than 4% ​last week, in what was their first weekly decline in three.

Trump ​said on Sunday that oil from a recently struck deal with Venezuela will be used to replenish the U.S. Strategic Petroleum Reserve, which has dropped ​near its lowest level in 44 years.