Why Kharg Island remains a red line in the US–Israel war on Iran

Iran has reportedly continued exporting oil through its Kharg Island despite the ongoing war with the United States and Israel, while Washington considers seizing the strategic facility.

According to TankerTrackers.com, cited by Bloomberg, oil shipments have continued from the island, which remains a key export hub for Iran. Axios reported on March 7 that the US administration had discussed the possibility of seizing the island.

The small coral island lies about 15 miles off Iran’s mainland in the northern Persian Gulf and plays a central role in the country’s oil industry. Pipelines carry crude oil from major Iranian fields such as Ahvaz, Marun and Gachsaran to the island. It is estimated that about 90% of Iran’s crude exports pass through Kharg Island before tankers move through the Strait of Hormuz.




JPMorgan has said Iran’s oil exports would stall and production could fall sharply if the United States and Israel were to seize the port at Kharg Island.

The bank further warned, "A direct strike would immediately halt the bulk of Iran’s crude exports, likely triggering severe retaliation in the Strait of Hormuz or against regional energy infrastructure.”

Export tripled

In the days leading up to the US-Israeli attack, Iran increased exports from the island to near record levels.

Although Iraqi forces attacked some terminals and tankers during the war, Kharg Island continued operating and damaged facilities were repaired quickly, JPMorgan said.

Between February 15 and 20, the country loaded more than 3 million barrels per day, nearly three times its usual export pace of around 1.3 to 1.6 million barrels per day, according to JPMorgan.

The island is estimated to have storage capacity of about 30 million barrels. Data from Kpler suggests that roughly 18 million barrels of crude are currently stored there, equivalent to around 10 to 12 days of exports under normal conditions.

Spared earlier

Kharg Island has remained largely operational even during earlier conflicts. During the 1979 Iran hostage crisis, US President Jimmy Carter imposed sanctions but did not order strikes on the island.

Later, during the Iran-Iraq Tanker War in the 1980s, President Ronald Reagan focused on protecting shipping and targeting Iranian vessels and missile sites rather than the island itself.

Trade hit

Iran is the third-largest oil producer in the Organisation of the Petroleum Exporting Countries and supplies about 4.5% of global oil output. The country produces around 3.3 million barrels of crude oil per day along with about 1.3 million barrels per day of condensate and other liquids.

The current conflict has already affected global energy markets. The war has also disrupted shipping through the Strait of Hormuz, a major route through which about 20% of the world’s oil and gas normally passes.