The war between US-Israel forces and Iran is now a month old. The war has seen air strikes by both the parties involved, damaging important infrastructure of Oil & Gas industry. Iran’s Supreme Leader Ayatollah Khamenei was killed at the start of the war. The crucial trade route of Strait of Hormuz has been blocked for weeks leading to an oil crisis around the world.
As the war rages on, US President Donald Trump has said that he would prefer to take the oil in Iran. Further, the US President suggested that the US may take over the Kharg Island in Persian Gulf from Iran, a vitally important island for the Persian country. Notably, most of Iranian oil pass through Kharg Island.
Earlier, on March 13, US had launched strikes on Kharg Island but those strikes targeted only the military installations on the island and left the oil facilities alone. Now, if the US President is keen on taking over Iran’s oil, controlling Kharg Island will be an important part of that strategy.
The importance of Kharg Island
Although relatively small in size, Kharg Island plays an absolutely critical role in Iran’s oil economy and in global energy markets. Trump has been eyeing this island due to its strategic geographical location, its role in Iran’s economy and the Iranian military installations on the island.
The strategic geographical location of Kharg Island
Kharg Island lies in the northern part of the Persian Gulf and is in close proximity to several of Iran’s major offshore oil fields. The island is only about 8 km long and 4–5 km wide, but its location gives it access to deep-water ports in the region capable of handling large oil tankers.
This deep-water access is crucial because much of Iran’s mainland coastline is relatively shallow, making it difficult for large crude carriers to dock. As a result, Iran pipes much of its oil from inland and offshore fields directly to Kharg Island, where it is stored and loaded onto tankers for export.
Historically, the island became Iran’s primary oil export hub in the 1960s during the reign of Mohammad Reza Pahlavi, when modern oil terminals were developed there with foreign investment. Over time, the island evolved into the central artery of Iran’s oil economy.
The hub of Iran’s oil exports
The importance of Kharg Island cannot be overstated. Experts estimate that roughly 90% of Iran’s crude oil exports pass through the island’s terminals, making it the single most important energy infrastructure site in the country.
The island has massive oil storage tanks to store the oil coming from Iran’s oil fields. It has pipelines linking those oil fields to the export terminals. Massive supertankers can be loaded on the island. The island also has military infrastructure to protect this critical oil infrastructure. These military facilities were targeted by the US earlier in March.
Exports through Kharg Island generate tens of billions of dollars annually for the Iranian government and keep its economy moving. The money generated through exports from Kharg Island fund much of the country’s state budget and also support military and security institutions.
If Kharg Island stops functioning, Iran’s ability to sell oil to the world, and with it the Iranian economy, would collapse.
Trump eyeing Kharg island
Now, US President is eyeing Kharg Island, and wants to move beyond air strikes and seize full control of the island. The aim behind such a move is to a) control Iranian oil and its export, and b) crippling Iran’s economy and reduce its ability to fight back against the US forces in the region.
If US takes control of Kharg Island, it will also end up controlling global oil supply. This will also enable US to pressurise Iran to reopen the Strait of Hormuz and normalise global oil supply chains.
If Iran loses control of this strategically important island, it may also push the Iranian regime to agree to a ceasefire quickly rather than stretching the war.
The risks of seizing the island for the US
Even if US forces end up capturing Kharg Island, holding it would be extremely difficult. The island lies within range of Iranian missiles, drones, and artillery from the mainland. Any U.S. occupation would require a major military operation and could escalate the conflict dramatically.
Furthermore, Iran could retaliate by attacking oil infrastructure across the Gulf or disrupting global shipping routes, which could send oil prices skyrocketing worldwide.
