Home > International > US Strikes Kharg Island, Iran’s Economic Lifeline
The tiny coral outcrop, just 25 kilometers off Iran’s coast, processes 90% of the country’s crude oil exports.
Marrakech – The United States military bombed more than 90 military targets on Iran’s Kharg Island on Friday, ratcheting the two-week-old war into uncharted territory. President Donald Trump described the operation as “one of the most powerful bombing raids in the History of the Middle East.”
The tiny coral outcrop, just 25 kilometers off Iran’s coast, processes 90% of the country’s crude oil exports. Trump said US forces “totally obliterated every military target” on what he called Iran’s “crown jewel.”
US Central Command confirmed the strikes destroyed naval mine storage facilities, missile storage bunkers, and multiple other military sites. Iranian state media reported more than 15 explosions on the island.
Trump said he chose not to target the island’s oil infrastructure “for reasons of decency.” He warned, however, that he would reconsider should Iran continue blocking ships through the Strait of Hormuz.
Iran’s Fars news agency said the attacks hit air defenses, a naval base, an airport control tower, and a helicopter hangar. Iranian officials insisted no oil infrastructure was damaged and exports continued normally.
Iran threatens retaliation against regional oil facilities
Tehran responded with a direct threat. A spokesperson for Iran’s military command said all oil and energy infrastructure belonging to US-linked companies in the region would be “destroyed and turned into a pile of ashes” if Iranian energy facilities were attacked.
Iran’s Islamic Revolutionary Guard Corps then warned the United Arab Emirates that US “hideouts” within its territory were “legitimate targets.” The IRGC claimed the US had launched missiles from positions concealed in Emirati ports and docks.
Hours later, a fire broke out at the UAE’s Fujairah port, a major oil hub outside the Strait of Hormuz. The Fujairah Media Office said debris from an intercepted drone caused the blaze. Some oil-loading operations were subsequently suspended.
The UAE’s defense ministry reported intercepting nine ballistic missiles and 33 drones from Iran on Saturday alone. Since the war began on February 28, the UAE has intercepted 294 ballistic missiles, 15 cruise missiles, and 1,600 drones.
Anwar Gargash, diplomatic adviser to the UAE president, indicated Iran’s strategy of targeting Gulf states “reveals a military impotence, a moral bankruptcy, and a political isolation.”
US gas prices climbed to an average of $3.68 a gallon on Saturday, a 23% increase since the war began. Brent crude oil surged from $73.21 before the conflict to over $103 per barrel. Diesel prices hit $4.85 a gallon, up from $3.71 before the strikes.
The Strait of Hormuz, through which 20% of the world’s oil passes, remains effectively closed to tanker traffic. Iran’s new supreme leader, Mojtaba Khamenei, has said the waterway should stay shut as a tool of pressure.
Neil Quilliam of the Chatham House think tank warned against striking Kharg’s oil facilities. “We may see the $120 a barrel price we saw on Monday heading to $150 if Kharg were attacked,” he told the Guardian. “It’s too vital for global energy markets.”
Former US Army Brigadier General Mark Kimmitt told CNN the US is holding the island “hostage” to ensure Iran allows ships through the strait. “If that oil infrastructure is targeted, it is clear that Iran is going to attack the rest of the infrastructure in the Middle East,” he explained. “And at that point, the prices of oil will just go out of control.”
Japan asked Australia to boost its liquefied natural gas output. India secured limited safe passage for two tankers through the strait. Iraq began working on alternatives to export its oil.
Analysts question the strategic logic of the strikes
Justin Crump, a military analyst and CEO of intelligence consultancy Sibylline, told BBC Radio 4 the bombing was an attempt to deter Iran from escalating further. “He’s showing it as being merciful but saying he could be more punishing to the IRGC,” Crump said of Trump.
Robert Pape, professor of political science at the University of Chicago, told Al Jazeera that Trump ordered the strike “out of desperation.” He noted that Trump initially expected regime change but was surprised the Iranian leadership did not collapse. “He thought he was going to get regime change and that the Iranian leadership was going to fall like a house of cards,” Pape argued.
Zeidon Alkinani, Middle East politics lecturer at Georgetown University in Qatar, told Al Jazeera the attack marks a shift from military conflict to economic warfare. “Both sides remain stubborn, and the global economic implications may be even more severe than the situation on the ground suggests,” he said.
Lynette Nusbacher, a former British intelligence officer, contended that destroying Kharg “would abandon any pretence of fighting a war to create a brighter future for Iran” because it would deny any successor regime vital oil income.
The Pentagon is sending 2,500 Marines from the 31st Marine Expeditionary Unit, along with the amphibious assault ship USS Tripoli, to the region. The deployment has fueled speculation about a possible seizure of Kharg Island.
Michael Rubin, a former senior Pentagon adviser, recalled discussing the idea with White House officials. “If they can’t sell their own oil, they can’t make payroll,” he argued.
Quilliam warned such an operation would backfire. “If the US were to seize it, then you are separating the Iranian oil industry. Iran would have production but couldn’t export, while the US wouldn’t be able to produce. That would set markets in a tailspin,” he said.
Muyu Xu, senior crude oil analyst at Kpler, told CNN that if Kharg’s facilities were destroyed, rebuilding could take over a year. Iran still faces Western sanctions that limit its access to funds, technology, and expertise.
The war has killed more than 3,000 people across the region in two weeks. Iran reports 1,444 dead and 18,551 injured. Lebanon’s toll stands at 826 killed. At least 13 US service members have died. Six people were killed in the UAE, and casualties were reported in Bahrain, Saudi Arabia, Kuwait, Oman, and Iraq.
Two drones struck the US Embassy compound in Baghdad on Saturday. Five US Air Force refueling planes were damaged at a base in Saudi Arabia. Strikes continued across Iran, including in Tehran, Isfahan, and Tabriz.
Hamas called on Iran to “avoid targeting neighboring countries” in a rare public disagreement with its main backer. Trump, meanwhile, urged Iran to “lay down their arms, and save what’s left of their country.”
He called on China, France, Japan, South Korea, and Britain to send warships to keep the strait open. “In the meantime, the United States will be bombing the hell out of the shoreline, and continually shooting Iranian Boats and Ships out of the water,” he wrote on Truth Social.
In a separate post, Trump claimed Iran “is totally defeated and wants a deal – but not a deal that I would accept,” providing no evidence Tehran was seeking any agreement.
Read also: Oil, Superpowers, Iran and Gulf Monarchies
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