US President Donald Trump announced that the US had heavily bombed military targets on Iran's oil hub Kharg Island, but Iranian forces continue to operate from there.
Trump said the US Navy will soon begin escorting tankers through the Strait of Hormuz, but warned that he would reconsider his decision if Iran or anyone else interferes with the free passage of ships.
Iran's Fars news agency reported thick smoke rising from Kharg Island, contradicting Trump's claims that the US 'obliterated' military targets.
Oil prices have spiked, with Brent contracts for a barrel of crude soaring over 42% as the conflict continues to rage.
The US and Israel have dispatched troops and ships to the region, including the USS Tripoli, an amphibious assault ship with 2,500 Marines.
The conflict has also seen drone and missile attacks on Israel and its Gulf neighbours, with at least 12 medical personnel killed in an Israeli strike on a primary healthcare centre in southern Lebanon.
