Tehran, April 7 -- Iran's key oil export terminal on Kharg Island came under attack on Tuesday, according to Iranian state media outlet Mehr News, in a significant escalation of the month-long confrontation between the United States and Iran.

The small island in the Persian Gulf serves as Tehran's most vital oil facility. Several strikes reportedly hit the site, which lies at the heart of the ongoing military standoff that has already sent shockwaves through global energy markets.

Kharg Island handles nearly 90 per cent of Iran's oil exports. Much of the Iranian mainland coastline is too shallow for large tankers, which makes the island essential for the country's energy trade.

The location of the island, opposite US military bases in ...