Iran Oil Hub Kharg Island Central to War Strategy

• By Thetripurapost Desk, Teheran
• Mar 10, 2026
• 517

Amid the escalating conflict involving the United States, Israel, and Iran, Kharg Island has emerged as a strategically critical focal point in the Persian Gulf. Situated close to the Strait of Hormuz, the island serves as the principal hub of Iran’s crude oil exports, making it a potential target in the broader geopolitical confrontation.

Several media reports suggest that the administration of Donald Trump is examining military options that could include seizing or disabling the oil infrastructure on Kharg Island. The island is widely regarded as the backbone of Iran’s oil export system, with an estimated 80–90 percent of the country’s crude oil shipments originating from its terminals.

The facility hosts extensive energy infrastructure, including large export terminals, pipelines, storage tanks, and shipping installations. Under normal conditions, the site is capable of loading up to seven million barrels of crude oil onto tankers every day. Developed with foreign investment in the 1960s, Kharg Island eventually evolved into Iran’s primary oil export hub and remains central to the country’s energy economy. According to Michael Doran, a senior fellow at the Hudson Institute, any attack on the facility could provoke a massive Iranian retaliation and potentially trigger a far wider regional conflict.

Although the United States and Israel have reportedly targeted several Iranian military installations and nuclear facilities, Kharg Island has not yet been struck. Satellite tracking data and maritime monitoring agencies indicate that Iran continues to export crude oil from the island despite the ongoing hostilities.

Reports indicate that more than 12 million barrels of oil have been shipped from the facility since February 28. However, analysts believe the actual figure could be significantly higher because many Iranian tankers operate within a so-called “dark fleet,” switching off their tracking systems to evade detection.

These vessels, commonly referred to as the Dark Fleet, frequently disable their Automatic Identification System (AIS) transponders, making their movements difficult to monitor. Kharg Island lies roughly 25–30 kilometers off Iran’s coast in the Persian Gulf, placing it dangerously close to the strategically vital Strait of Hormuz.

The Strait of Hormuz is among the world’s most crucial maritime energy corridors, through which nearly 20 percent of global oil shipments pass. Any disruption in this region—whether through a direct attack or a blockade—could severely affect global oil supplies and trigger sharp increases in energy prices.

According to various strategic assessments, the United States believes that destroying or capturing the Kharg Island terminal could severely undermine Iran’s financial capacity to sustain the war. Oil revenues constitute the primary economic lifeline for the Iranian government and a major source of funding for its military operations. If that revenue stream were disrupted, Iran could face serious challenges in maintaining prolonged military engagement.

Experts warn that a strike on Kharg Island could produce two immediate consequences: a dramatic decline in Iran’s oil revenues and a rapid surge in global oil prices. Some estimates suggest that disruptions to exports from the island could push oil prices up by around $10 per barrel in the international market.

Iran currently produces roughly 3.3 million barrels of crude oil per day, along with an additional 1.3 million barrels of condensate and other liquid fuels, accounting for about 4.5 percent of the world’s energy supply. Pipelines from major Iranian oil fields—including Ahvaz, Maroun, and Gachsaran—feed directly into Kharg Island, where crude oil is stored in massive tanks before being loaded onto tanker ships bound for international markets.

The island possesses storage facilities capable of holding approximately 30 million barrels of oil. Current estimates indicate that around 18 million barrels are stored there—equivalent to roughly 10 to 12 days of exports under normal conditions.

Prior to the outbreak of hostilities, Iran reportedly accelerated its export operations from Kharg Island. Between February 15 and February 20, daily shipments reportedly exceeded three million barrels—almost three times the normal rate—suggesting that Tehran sought to maximize exports before the conflict escalated.

Kharg Island has long been regarded as a strategic asset in regional conflicts. During the Iran hostage crisis of 1979, advisers reportedly recommended that then-US President Jimmy Carter seize the island, though the proposal was ultimately rejected. Later, during the Iran–Iraq War of the 1980s, Iraqi forces inflicted heavy damage on the island’s oil terminals, though Iran subsequently rebuilt the infrastructure.

Despite its strategic importance, experts believe that the United States and its allies have refrained from attacking Kharg Island due to the potentially catastrophic consequences for the global energy market. A strike could disrupt international shipping, trigger extreme volatility in oil prices, and escalate the conflict across the Gulf region.

For now, Washington’s strategy appears to focus on weakening Iran’s military and nuclear capabilities rather than targeting its primary oil export hub. Nevertheless, analysts believe that this small island could ultimately play a decisive role in shaping the trajectory of the conflict in the Persian Gulf.