Investing.com -- The Trump administration is weighing plans to occupy or blockade Iran’s Kharg Island in an effort to force Tehran to reopen the Strait of Hormuz, according to Axios, citing four sources familiar with the matter. The unconfirmed report sent traders scrambling as global energy markets react to the potential escalation.

The island, located 15 miles offshore, handles 90% of Iran’s crude oil exports. Any military action targeting the facility would mark a significant escalation in the ongoing standoff over the strait, through which a substantial portion of global oil supplies passes.

According to the sources, such an operation would only proceed after additional U.S. military strikes further weaken Iranian military capabilities around the Strait of Hormuz. One source told Axios that officials believe approximately one month of strikes would be needed before attempting to take the island.

The potential operation would require additional troops beyond the three Marine units already en route to the region. The White House and Pentagon are considering deploying more forces, a U.S. official said.

A senior administration official told Axios that President Trump wants the Strait of Hormuz reopened and is prepared to take Kharg Island or launch a coastal invasion if necessary, though no final decision has been made.