Trump Signals Potential U.S. Action on Iran’s Kharg Island, Iran’s Key Oil Hub

U.S. President Donald Trump has redirected attention to Kharg Island, Iran’s principal oil export hub, after announcing an interim ceasefire with Iran and warning that the United States is preparing further strikes.

On Wednesday, while attending the NATO summit in Turkey, Trump announced that the United States had launched airstrikes against Iranian targets in retaliation for attacks on three oil tankers in the Strait of Hormuz.

In a briefing to reporters, Trump warned, “I am giving them a brief notice. We are ready to strike sharply tonight.”

According to U.S. Central Command, more than 60 boats operated by the Islamic Revolutionary Guard Corps (IRGC) were struck. Trump stated that 28 boats were incapacitated the previous night, with additional hits likely to follow. He reiterated his earlier threat that the U.S. could seize Kharg Island, which processes around 90 percent of Iran’s oil exports.

Key Facts About Kharg Island

Kharg Island is located in the Gulf, approximately 55 km (34 mi) off the coast of Bushehr province. Although it is only about 8 km (5 mi) long and 4–5 km (2.5–3 mi) wide, its strategic position makes it a critical asset for the country. The deep waters around the island accommodate large oil tankers that load crude destined for Asian markets.

Known locally as the “Forbidden Island,” access is tightly controlled by the IRGC. Only personnel holding appropriate security clearances are permitted entry.

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Strategic Significance

Kharg Island serves as the nerve center of Iran’s oil sector. Approximately 90 percent of the nation’s crude oil exports transit through the island, which manages roughly 950 million barrels annually. Oil from offshore fields—Aboozar, Forouzan werk, and Dorood—is brought to Kharg and pumped via underwater pipelines to international buyers, with China being the largest purchaser.

During the Iran–Iraq War, the island endured repeated bombing by Iraq, temporarily damaging its terminal in an attempt to cripple Iran’s oil revenue and its ability to sustain the war effort. This history underlines Kharg’s vulnerability.

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Key Developments in the Current Conflict

Kharg Island has been central to the broader strategic narrative from the outset of the recent upheaval. In March, Trump claimed that U.S. forces had struck facilities on the island while deliberately sparing the oil infrastructure. He added, “For reasons of decency, I have chosen not to destroy the island’s oil infrastructure. However, if Iran or any other actor impedes the free and safe passage of vessels through the Strait of Hormoz, I will immediately reconsider this stance.”

Trump has repeatedly suggestedbut is reluctant to commit on the ground. Last month, he stated that seizing Kharg Island was his preferred option but questioned whether the United States possessed “the appetite.” On Wednesday, after noting the collapse of the ceasefire, he reiterated the threat.

Potential Impact on Global Energy Markets

Should Kharg Island’s operations be severely disrupted, Iran would lose its primary conduit for crude exports, removing a substantial volume of oil from global markets at a time when shipping through the Strait of Hormoz is already strained.

Market reactions to the escalating conflict have been swift. Brent crude rose more than 5 percent following Trump’s remarks, signifying concerns that intensified hostilities could further hinder oil supplies and transit through one of the world’s pivotal energy corridors. Before the current conflict, approximately 20 percent of oil and natural gas traded worldwide passed through the Strait of Hormuz.

Trump emphasized that Iranian oil itself is not the target of U.S. strikes. He said, “We struck Kharg Island last night. We are not targeting the oil facilities because we may take over Kharg Island; there is nothing they can do about it.”

He acknowledged that U.S. military actions against Iran typically lead to a temporary uptick in oil prices, noting, “Anytime we hit Iran, oil goes up a little bit.””

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