President Donald Trump has threatened to seize Iran's Kharg Island, the central hub for the country's oil exports, as U.S. military strikes against Tehran continue.
The declaration, reported by Axios on Wednesday, marks a significant escalation in the conflict and directly targets the infrastructure responsible for the vast majority of Tehran's crude shipments.
Kharg Island handles roughly 90% of Iran's oil exports.
A threat to seize or strike the facility raises the prospect of a severe supply disruption in the Persian Gulf, compounding existing risks in the Strait of Hormuz.
The rhetoric comes amid ongoing U.S. military operations in the region, which have already kept crude prices elevated and shipping insurance costs soaring.
Market participants are for any concrete steps toward the threatened action.