In the initial two weeks of the latest Middle Eastern conflict, as the United States and Israel launched intense airstrikes against military and energy facilities across Iran, one location remained conspicuously untouched.
Despite its small size, Kharg Island serves as Iran’s economic lifeline, handling approximately 90% of the country’s crude oil exports. This means any attack on the island could lead to a serious escalation of tensions.
However, on Friday, March 13, the U.S. struck military installations on the island. According to U.S. officials and Iranian state media, facilities related to oil trade were not targeted. Still, former President Trump threatened that the U.S. would attack these facilities if Iran continued to block ships from passing through the Strait of Hormuz.
Why is this island so important?
Kharg Island is a coral reef situated in the Persian Gulf, only 25 kilometers (15 miles) off the coast of Iran.
Nearly every day, millions of barrels of crude oil are transported via pipelines from Iran’s major oil fields—including Ahvaz, Marun, and Gachsaran—to the island. Due to strict military control, it is referred to in Iran as the “forbidden island.”
The island’s long breakwater extends into deep waters capable of accommodating supertankers, making it a vital hub for oil distribution.
About 90% of Iran’s crude oil exports are processed here.
The island has long been crucial to Iran’s economy. A 1984 CIA document described its facilities as “the most critical in Iran’s oil system, whose continued operation is essential to Iran’s economic well-being.” Israeli opposition leader Yair Lapid recently stated that destroying the terminal would “severely damage Iran’s economy and overthrow the Iranian regime.”
Iran reportedly supplies about 4.5% of the world’s oil, producing 3.3 million barrels of crude per day, along with 1.3 million barrels of condensate and other liquids.
Since the outbreak of the Iran conflict, the island has reportedly been loading tankers “nonstop.” Satellite imagery, shoreline photos, and data are used to track crude shipments.
U.S. investment bank JPMorgan noted in a report that in the weeks prior to the U.S.-Israel airstrikes on Iran, exports from Kharg surged to near-record highs.
Storage capacity at Kharg Island is estimated at around 30 million barrels, with current crude stocks at approximately 18 million barrels, according to global trade analytics firm Kpler.
What happened at Kharg Island?
On Friday, March 13, former President Trump announced that U.S. forces had carried out what he called “one of the most powerful bombing operations in the history of the Middle East,” destroying military facilities on Kharg Island.
In a video posted on Truth Social, Trump showed U.S. strikes targeting Kharg’s airport facilities and runways.
A U.S. military official revealed that the airstrikes were “large in scale” but avoided the island’s oil infrastructure. Targets included naval mine storage facilities, missile storage bunkers, and other military infrastructure.
Iranian local media reported more than 15 explosions on the island but stated that no oil infrastructure was damaged.
However, Trump threatened that if Iran continued blocking ships in the Strait of Hormuz, he would attack the island’s oil assets.
What impact does Kharg Island have on the war and global oil prices?
According to Iranian state media, Tehran’s military command stated that any attack on its oil and energy infrastructure would trigger retaliatory strikes against facilities owned by U.S.-aligned oil companies in the region.
“This has evolved from simply ‘defeating the military, overthrowing the regime’ to now trying to destroy the country’s economic lifeline, and possibly even cripple it,” said former U.S. Army Brigadier General Mark Kimmitt.
Kimmitt suggested that the U.S. is leveraging the island to ensure Iran allows ships to pass through the Strait of Hormuz, whose closure has already caused crude prices to surge.
If oil infrastructure were targeted, Kimmitt said, “it is clear Iran would attack other infrastructure across the Middle East.”
“At that point, oil prices would spiral out of control,” he added.
Analysts believe that if Kharg’s oil facilities were attacked, it could take Iran months or even more than a year to rebuild. As the main buyer of Iranian oil, China could be the most affected. “Iran remains under Western sanctions and lacks access to sufficient funds, technology, and expertise, making reconstruction extremely difficult,” one analyst noted.
What happens next?
Analysts suggest Iran may further escalate the situation by carrying out its threat to attack regional oil infrastructure. Iran has previously targeted oil storage tanks in U.S.-allied Oman and Bahrain, as well as tankers and cargo ships in the Persian Gulf.
The Islamic Revolutionary Guard Corps has also threatened to “set fire to” oil and gas infrastructure in the region if Iran’s energy facilities come under attack.
The airstrikes on Kharg Island coincided with a U.S. announcement that it would deploy a rapid reaction force of about 2,500 Marines and sailors to the Middle East. Former Brigadier General Kimmitt suggested this force could potentially occupy Kharg Island.
The specific mission and deployment location of the Marine Expeditionary Unit (MEU) remain unclear. Such units have historically been used for missions requiring ship-to-shore operations, including large-scale evacuations, amphibious assaults, raids, and attacks.
Experts also believe that attempting to capture or attack Kharg Island would require a significant ground force—something the Trump administration has so far been reluctant to commit.
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