US President Donald Trump threatened to obliterate Iran's Kharg Island oil hub unless a deal is reached soon.
Kharg Island, located 24 kilometers off Iran's coast in the Persian Gulf, handles 90% of the country's crude exports.
Trump claimed the U.S. is in "serious discussions" with a "more reasonable regime" in Tehran.
In a Truth Social post, Trump said, "If the Hormuz Strait is not immediately 'open for business,' we will conclude our lovely 'stay' in Iran by blowing up and completely obliterating all of their electric generating plants, oil wells and Kharg Island."
The island hosts terminals capable of loading 1.3-1.6 million barrels of crude daily.
Earlier, Trump told the Financial Times he'd prefer to "take the oil in Iran," suggesting possible seizure of Kharg Island.
Iran denies direct talks, calling recent proposals a cover for troop deployment.
Iranian officials warn of potential ground invasions and minefields in the Persian Gulf.
Experts say holding Kharg would be difficult due to missile and artillery threats from the mainland.