Categories: World

Why Is Iran’s Kharg Island Considered Its Oil ‘Crown Jewel’ — And Why Did The US Target It? Explained

The loss of Kharg as an operating center would also impact the global supply, and with oil prices already over 100 per barrel, this would lead to the global energy crisis being more acute.

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Published by Namrata Boruah
Published: March 14, 2026 07:32:19 IST

On Friday, President Donald Trump said the US Central Command executed one of the largest bombing campaigns in Middle East history on the small Persian Gulf island of Kharg Island, destroying all military facilities, but sparing the oil infrastructure of the island intentionally. In an interview on Truth Social, Trump said, ‘Decency reasons have caused me to decide against wiping out the Oil Infrastructure on the Island. But in case Iran, or any other, shall do anything to frustrate the Free and Safe Passage of Ships through the Strait of Hormuz, I will cause an immediate reconsideration of this decision’. The Iranian strike was meant as a message to Tehran that the oil installations would be the second target should Iran persist in threatening the sea traffic. Trump also asked Iranian military staff to disarm and preserve what remained of their nation which is not much.

Why Is Iran’s Kharg Island Considered Its Oil ‘Crown Jewel’?

The Kharg Island is an Iranian oil hub which is a strategic and well-placed point at the coast, approximately 27 miles to the south western coast of the country and 300 miles to the Strait of Hormuz. Unlike the rest of the shallow coastline of Iran; Kharg has deep waters near the coast, which enables the supertankers to dock, load crude and sail away. Central and western oilfields end up in the island in the eastern jetties, thus, the main point of export of Iranian oil. Usually, 1.3-1.6 million barrels of oil are carried over Kharg on an average day and on some occasions during the mid February period, it went up to 34 million barrels per day. The island also holds a reserve backup of 18 million barrels which is about 10 percent of oil going through the Strait of Hormuz daily.

What The Bombing Means 

The economic impact of destroying the oil facilities of Kharg would have faced disastrous economic impacts on Iran and the world oil market. Iran depends on the island to sell most of its exports, and in case of a strike on its oil infrastructure, it might complicate the already fragile world supply, and cause a further rise in oil prices. The loss of Kharg as an operating center would also impact the global supply, and with oil prices already over 100 per barrel, this would lead to the global energy crisis being more acute. The US has placed a strong warning message by not attacking the oil facilities yet, Iran any other interference with the shipping can result in an economic and strategic attack that has far reaching impacts.

ALSO READ: Donald Trump Says US Struck Military Targets On Iran’s ‘Crown Jewel’ Kharg Island, Warns Tehran Against Blocking Passage Through Strait Of Hormuz

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