economy
March 11, 2026
Why Iran’s vital Kharg Island oil hub is still untouched by US-Israel bombers
While some argue for destroying the terminal through which 90% of Iran’s oil exports flow, others caution of a global market ‘tailspin’
TL;DR
- Kharg Island is Iran's most sensitive economic target, processing 90% of its oil exports.
- Bombing or capturing Kharg Island could cause a sustained increase in global oil prices, potentially to $150 a barrel.
- The US has not attacked Iran's oil infrastructure, though prices have risen due to fears of Iranian retaliation closing the Strait of Hormuz.
- Israel recently struck oil refineries and depots in Tehran but has not targeted Kharg Island.
- Kharg Island is crucial for exporting oil due to its proximity to deep waters, handling 1.3m-1.6m barrels daily.
- Some US officials and advisors have considered 'seizing Kharg Island' to economically cripple the Iranian regime.
- Destroying Kharg Island's facilities would risk an 'economy-shaping' increase in oil prices with long-term effects.
- Seizing the island would require a large, sustained military operation and could lead to a self-defeating standoff where Iran cannot export its oil and the US cannot produce it.
- Attacking Kharg Island could deny a successor regime vital oil income, raising political arguments against its destruction.
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