In the vicinity of the magic angle in twisted bilayer graphene (TBG), the two low-energy van Hove singularities (VHSs) become exceedingly narrow1-10 and many exotic correlated states, such as superconductivity, ferromagnetism, and topological phases, are observed11-16. Heterostrain, which is almost unavoidable in the TBG, can modify its single-particle band structure and lead to novel properties of the TBG that have never been considered so far. Here, we show that heterostrain in a TBG near the magic angle generates a new zero-energy flat band between the two VHSs. Doping the TBG to partially fill the zero-energy flat band, we observe a correlation-induced gap of about 10 meV that splits the flat band. By applying perpendicular magnetic fields, a large and linear response of the gap to magnetic fields is observed, attributing to the emergence of large orbital magnetic moments in the TBG when valley degeneracy of the flat band is lifted by electron-electron interactions. The orbital magnetic moment per moire supercell is measured as about 15 uB in the TBG.
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