Kharg Island is Iran’s primary oil export hub, processing 90% of its crude shipments-mostly to Asia. Located in the Persian Gulf, the island hosts deep-water terminals capable of loading 1.3-1.6 million barrels daily.
Recent attacks by the US and Israel have targeted military assets on the island. President Trump warned that further interference with the Strait of Hormuz could lead to strikes on Kharg’s oil infrastructure-a move Washington has avoided until now.
Iran has vowed retaliation against US-linked energy assets if its facilities are attacked. Analysts warn a strike on Kharg could remove 1.5-2 million barrels per day from global markets-3-4% of seaborne trade-and push Brent crude toward $120.
The risk extends beyond Iran. Attacks on Saudi Arabia’s East-West pipeline or UAE’s Abu Dhabi crude line could deepen disruption. Even OPEC’s spare capacity may be stranded if the strait remains closed.
Market anxiety is rising. A prolonged closure could fuel inflation, weaken global growth, and strengthen the US dollar.