- Kharg Island handles 90% of Iran’s crude exports, making it the nation's most vital economic and strategic asset.
- Recent US attacks focused on military and helicopter facilities while avoiding oil installations to prevent a global energy crisis.
- Experts warn that damaging the island's terminals could trigger $200-per-barrel oil prices and skyrocketing global insurance cost
Iran has accused the United States of targeting and bombing Kharg Island, the oil hub of the Middle East nation. US President Donald Trump has warned of further attacks on Kharg Island in response to the intrusion of Iran in the Strait of Hormuz, which has disrupted the major shipping route. But, why did the US military strike the principal oil export hub of Iran?
Built in the 1960s at Iran's northwestern Gulf coast, Kharg Island holds strategic value. As the island has a shallow coastline, accommodation of the largest vessels is not possible. Still, the route is responsible for exporting about 90% of Iran's crude oil. Tehran has long invested in Kharg Island, laying down storage tanks, equipped export ports, pipelines, and military facilities.
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The island contributes significantly to Iran's economy, which makes it both strategic and economically crucial. As the world's major shipments operate from the Strait of Hormuz, the crude oil infrastructure on Kharg Island reduces the dependency of Iran on the route.
Why Oil Facilities Were Spared
The US attacked defensive positions, bases, and helicopter facilities, as earlier reported by Iran's Fars News Agency, but left the oil installations untouched. Striking Kharg Island could surge fuel prices for the long term, crippling inflation and increasing economic risks worldwide, including in the United States.
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Military analyst Hossein Kanani Moghaddam told CGTN that striking Kharg or some of the islands will not put pressure on Iran, and this pressure will fall on American- and European-linked oil companies. "This is not just about security. It's also about skyrocketing insurance costs, high risks, and extreme shipping expenses. Also, delays caused by stopping ships at sea could push the price of oil to $200 per barrel," said Moghaddam.
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