The senior Iranian source, who has direct knowledge of Iranian decision-making and spoke to Reuters on condition of anonymity, said conditions in the Strait of Hormuz would "become worse for vessels that violate" rules set by Tehran for passage through the waterway.
The source added that no target was beyond Iran's reach.
Iranian President Masoud Pezeshkian struck a milder tone on Monday, telling India's Prime Minister Narendra Modi on the sidelines of a regional security meeting in Kyrgyzstan, that his country still sought a negotiated resolution of the conflict.
"... we are still trying to achieve an agreement and understanding, and we believe that continuing the war is in no one's interest, neither ours, nor the region's, nor humanity's," Iran's semi-official Tasnim news agency quoted him as saying.
Trump had annoyed Iran overnight by posting on his Truth Social platform an AI-generated video clip that he said showed Iran's oil hub Kharg Island being "blown to smithereens!!!"
There was no evidence of any such attack and a U.S. official said on Monday the military had not targeted Kharg Island in overnight strikes. An Iranian official dismissed Trump's post as "laughable".
Reuters confirmed that the video clip showing dramatic explosions was most likely synthetically generated, using software that detects AI-manipulated imagery.
The White House and the U.S. Defense Department did not respond to Reuters requests for comment outside regular business hours.
Kharg handled 90% of Iran's oil exports before the war launched by U.S. and Israeli attacks on February 28, and attacking it would severely disrupt energy trade and put huge pressure on the economy.
Trump has yet to achieve the objectives he set out at the start of the war: dismantling Iran's nuclear programme, curbing its ability to attack regional rivals and creating conditions for Iranians to overthrow their clerical rulers.
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