Kharg Island emerges as critical energy flashpoint in Iran war
If Iran’s Kharg Island were attacked or shut down, millions of barrels of crude could vanish from global supply, triggering an immediate surge in oil prices
Take a closer look at Kharg Island, one of the world’s most important energy strategic locations, after US President Donald Trump escalated the conflict and targeted Kharg Island, the heart of Iran’s economy.
Kharg Island is a small Iranian island in the Persian Gulf, located about 25–55 kilometres off the Iranian coast. The island covers only about 20 square kilometres and stretches roughly 8 kilometres in length.
Despite its small size, it is considered a highly important strategic energy location for the world because it is directly linked to Iran’s oil export system.
The main reasons why the island is so important include:
- Around 90% of Iran’s crude oil exports are loaded onto tankers from this island.
- The island hosts large oil terminals and storage facilities.
- It can accommodate giant oil tankers (supertankers).
Crude oil from Iran’s major fields such as Aboozar, Forouzan and Dorood is transported through subsea pipelines to this island before being loaded onto ships for export to global markets such as China and other Asian countries.
If the island were to stop operating, Iran’s economy would suffer severe consequences.
Much of Iran’s coastline is too shallow for large oil tankers, but the waters surrounding Kharg Island are deep, and the island has long offshore loading jetties, making it the country’s main crude oil loading hub.
A military strategic point
Kharg Island is sometimes referred to as the “forbidden island” because of its enormous economic importance to Iran. It is therefore considered a major military target and is heavily protected by the Islamic Revolutionary Guard Corps (IRGC).
In the past, particularly during the Iran–Iraq War, the island was attacked several times in attempts to cut off Iran’s oil revenues.
Impact on global oil prices
If Kharg Island were attacked or forced to shut down, a large volume of Iranian oil would disappear from the global market, and global oil prices could surge immediately.
Major buyers, especially China and other key customers, would likely begin scrambling for similar grades of crude oil from suppliers across the world, creating a supply shock.
Oil prices could soar because everyone understands that restoring oil production and export systems cannot be done as quickly as rebuilding buildings.
Such a scenario could trigger one of the most complex energy crises in a century.
