President Donald Trump has threatened to seize control of Iran's Kharg Island, the critical chokepoint for the country's oil exports, as U.S. military strikes against Tehran continue.
The declaration, first reported by Axios on Wednesday, marks a significant escalation in the conflict, shifting the focus from direct strikes to the potential physical disruption of Iran's primary revenue stream.
Oil prices spiked sharply in early trading Thursday following the announcement.
The threat to seize the island, which handles the vast majority of Iran's crude shipments, introduces a tangible supply-risk premium to the market.
Traders are now pricing in the possibility of a direct military intervention in the Persian Gulf's energy infrastructure, a scenario that would fundamentally alter global oil flows.
The move represents a hardening of U.S. policy as diplomatic channels remain closed.