Kharg Island
The small deep-water island in the Persian Gulf is fundamental to the Iranian oil industry, the most important in the country’s economy.
US President Donald Trump announced this Friday that US forces destroyed military installations in Kharg Island as a way of pressuring Iran to unblock the Strait of Hormuz.
Iran’s Revolutionary Guard maintains a near-total blockade of the strait, which is crucial to global oil transport.
Kharg Island is an important center for the Iranian oil industry as it is home to the Iran’s largest crude oil export terminalresponsible for approximately 90% of the country’s exports.
Trump classified this island as “the crown jewel of Iran”.
Kharg is linked by pipelines to important oil fields such as Aboozar, Forouzan and Dorood and is known for having large oil storage tanks for distribution to the international market.
The island, covered in low vegetation, is located in the Persian Gulf, about 25 km off the coast of Iran and about 483 km northwest of the Strait of Hormuz. It has an area of around 20 km².
This small island underwent rapid development during the boom of Iranian oil in the 1960s and 1970s due to its deep waters, as much of the Iranian coastline is too shallow to accommodate supertankers.
Other islands
Not only Kharg, but also the other islands off Iran’s southern coast are critical to Iran’s economy and security.
The island of Kharg, the island of I laugh and the small islands of Abu Musa and Greater and Lesser Tunb are of enormous importance due to their oil installations and strategic location.
Iranian Parliament Speaker Mohammad Bagher Qalibaf warned on Thursday that attacks on the Persian Gulf islands would provoke a new level of retaliation.
“A direct attack would immediately halt most of Iran’s crude oil exports, likely triggering strong retaliation,” JPMorgan said in an investment note this week.
Oil exports continue
Iran continued to export crude oil while other producers in the Persian Gulf halted their shipments due to fears of Iranian attacks.
Iran exported between 1.1 million and 1.5 million barrels per day from February 28, the day the war began, until last Wednesday.
The oil industry is the main pillar of the Iranian economy.Several large oil tankers were loading on Kharg Island on Wednesday, according to satellite images analyzed by the website TankerTrackers.
Much of the oil exported by Iran from Kharg passes through the Strait of Hormuz and is destined for Chinathe world’s largest importer of crude oil.
Markets will watch closely for any sign that U.S. strikes have damaged the island’s complex network of pipelines, terminals and oil storage tanks. Even small disruptions can further restrict global supply, increasing pressure at an already delicate time.
Iran has sought to diversify its export capabilities with the opening of the Jask terminal in the Gulf of Oman in 2021, outside the Strait of Hormuz bottleneck.
But Kharg remains “a pillar of the Iranian economy and an important source of revenue for the Islamic Revolutionary Guard Corps,” JPMorgan noted.
