A US official reportedly informed Axios Global Affairs Correspondent Barak Ravid that two commercial vessels were struck and sustained substantial damage.

No casualties have been reported.

Tensions have repeatedly flared between the US and Iran following joint US and Israeli strikes on several crucial Iranian sites on February 28.

Following months of hostilities, the US and Iran reached a peace agreement that would see the vital Strait of Hormuz reopened and Iran's commitment to dispose of its enriched uranium stockpiles which could potentially be used to create nuclear weapons.

On June 17, the US and Iran signed a Memorandum of Understanding (MoU) to conclude the conflict within 60 days.

Washington and Tehran are now attempting to secure a long-term peace agreement to end the conflict, restore international shipping in the crucial Strait of Hormuz and seek to resolve an ongoing dispute regarding Tehran's nuclear programme.

Under the MoU, Iran committed to ensuring that the passage of merchant vessels from the Persian Gulf to the Sea of Oman and vice versa is restored within 30 days to pre-war levels.

The US committed to lifting the naval blockade against Iran and restoring traffic within a maximum of 30 days to its full capacity as soon as the MoU was signed.

The waterway, through which 20% of all global oil traded passes, has been a major flashpoint in the conflict, and its closure sent shockwaves through financial markets worldwide.