Citing an unidentified senior US official, Axios reported on Tuesday that the US military conducted strikes on military targets located on Iran's Kharg Island.

Iran's semi-official Mehr News Agency also reported that Kharg island was targeted with several strikes.

Meanwhile, Iran's Revolutionary Guard sent a warning to neighbouring countries, noting that the 'restraint is over' and that they will start targeting the US' and partners' infrastructure and threatened to disrupt regional oil and gas supplies for years.

Market reaction

Markets turn risk-averse on these developments. At the time of press, US stock index futures were down between 0.4% and 0.6% on the day.