A billboard displayed in Tehran broadcast a video of US and Israeli ships being destroyed just days before an attack took place on Gulf tankers.

It showed destroyed American and Israeli ships in a sea of what appeared to be made up of Palestinian scarfs (keffiyehs) with the caption 'We Drowned Them All', in Farsi, Hebrew and English.

The board had been displayed outside in Vali-s Asr Square in Tehran's commercial centre on Wednesday 29 May, in honour of Quds Day, an event held to celebrate the last day of Ramadan.

The day had been initiated by the Islamic Republic of Iran in 1979 to express support for the Palestinians and oppose Zionism and Israel.

Experts have now warned of chilling similarities with the 'Tanker War' of the 1980s, where the US Navy and Iran were entangled in a similarly shadowy conflict.

The billboard (pictured above) was displayed in Tehran's commercial district on Wednesday 29 May

This picture shows fire billowing from the Front Attair tanker which was hit in the Gulf of Oman

While the current tensions are not quite on the same scale, it shows how incidents such as these can escalate.

The so-called 'Tanker War' involved American naval ships escorting reflagged Kuwaiti oil tankers through the Persian Gulf and the strait after Iranian mines damaged vessels in the region. It culminated in a one-day naval battle between Washington and Tehran, and also saw America accidentally shoot down an Iranian passenger jet, killing 290 people.

Oil tankers were attacked on Thursday near the strategic Strait of Hormuz in the Persian Gulf. The suspected attacks occurred about 25 miles off the southern coast of Iran.

Two tankers were attacked, one was left ablaze with both being left adrift. The US navy's fifth fleet said it had been assisting the tankers which issued distress calls – the crew from both tankers were evacuated.

Taxis and locals walk past the billboard which shows a sea of Palestinian sscarfs underneath ships

An Iranian navy boat tries to control a fire on the crude oil tanker Front Altair in the Gulf of Oman earlier this week after it was reportedly attacked with a torpedo

Iran denied any role in Thursday's apparent attacks, which have again rocked the Persian Gulf amid heightened tensions between Tehran and Washington over the unravelling nuclear deal with world powers.

Four other oil tankers off the nearby Emirati port city of Fujairah suffered similar attacks in recent weeks, and Iranian-allied rebels from Yemen have struck US ally Saudi Arabia with drones and missiles.

The Front Altair, loaded with naphtha from the United Arab Emirates, radioed for help as its cargo of flammable chemicals caught fire. The Kokuka Courageous, carrying methanol from Saudi Arabia and Qatar, called for help a short time later.

The US Navy sent the USS Bainbridge, which picked up 21 sailors from the Kokuka Courageous, and they stayed overnight on the destroyer, returning to their vessel on Friday to help in it being towed.

Inferno: A fire raged on board the oil tanker MT Front Altair after it was hit by an explosion in the Gulf of Oman in what has been described as a torpedo attack

President Donald Trump, pictured at the White House, has charged Iran with attacking tankers in the Gulf of Oman

Paolo d'Amico, the chairman of the oil tanker association INTERTANKO, said we need to keep in mind incidents like the 'Tanker War' and highlighted that 30 per cent of the world's crude oil passes through the straits.

'If the waters are becoming unsafe, the supply to the entire Western world could be at risk.'

How did the 'Tanker War' start? As experts strike similarities from the 'Tanker War' in the 1980s, we look back at how the conflict started. The conflict grew out of the bloody eight-year war between Iraq and Iran in the 1980s, which began when Iraqi dictator Saddam Hussein invaded Iran. The war killed 1 million people. The U.S. supported Saddam by providing intelligence, weaponry and other aid. Iraq first targeted Iran's shipping and by 1984 attacked Kharg Island, a crucial oil-tanker-loading terminal for Iran. Its air force also attacked ships in the Persian Gulf. After the Kharg attack, Iran began a concerted campaign to attack shipping in the region. Iraq ultimately would attack over 280 vessels to Iran's 168, according to the U.S. Naval Institute. The Iran's mining campaign began in earnest in 1987. At night, the Revolutionary Guard would drop mines from vessels disguised as traditional dhows, which ferry cargo around the waters of the Persian Gulf. As attacks targeted Kuwaiti oil tankers, the U.S. ultimately stepped in to protect them. The Soviet Union also volunteered. While mines represented a small number of the attacks, their psychological impact grew. They also allowed Iran to attack its foes without having to take direct responsibility. The mines were described as "God's angels that descend and do what is necessary," by Akbar Hashemi Rafsanjani, who would later become president of Iran. Advertisement

Thursday's attack resembled one in May that targeted four oil tankers off the nearby Emirati port of Fujairah. US officials similarly accused Iran of using limpet mines, which are magnetic and attach to a ship's hull. The mines are designed to disable - but not sink - a vessel.

Today, US President Donald Trump confirmed the assessment of senior advisers and has now publicly accused Iran of behind the attacks.

He said it was a 'nation of terror' which had 'been exposed' by the US.

The President had been speaking to Fox News after the US military released a video which showed Iran's Revolutionary Guard removing an unexploded limpet mine from one of the oil tankers, suggesting Tehran wanted to hide evidence of its alleged involvement.

Just last year, Trump withdrew from the 2015 nuclear deal that Iran reached with world powers. He has also recently imposed a series of sanctions which are set to squeeze Iran's economy and cut into its oil exports.

While Iran maintains it has nothing to do with the recent attacks, its leaders have repeatedly threatened to close the vital Strait of Hormuz, through which 20% of the world's oil travels.

In response to the President's claims, Iran accused Washington of waging an 'Iranaphobic campaign'.

In a statement from its UN mission, Iran accused the US of escalating tensions.

'The US economic war and terrorism against the Iranian people as well as its massive military presence in the region have been and continue to be the main sources of insecurity and instability in the wider Persian Gulf region and the most significant threat to its peace and security,' the statement said.

The Front Altair, loaded with naphtha from the United Arab Emirates, radioed for help as its cargo of flammable chemicals caught fire. The Kokuka Courageous, carrying methanol from Saudi Arabia and Qatar, called for help a short time later.

The US Navy sent the USS Bainbridge, which picked up 21 sailors from the Kokuka Courageous, and they stayed overnight on the destroyer, returning to their vessel on Friday to help in it being towed.

Thursday's attack resembled one in May that targeted four oil tankers off the nearby Emirati port of Fujairah. US officials similarly accused Iran of using limpet mines, which are magnetic and attach to a ship's hull. The mines are designed to disable - but not sink - a vessel.