- US President Trump warned of fresh strikes on Iran tonight targeting Kharg Island and oil markets
- Kharg Island exports about 90% of Iran's crude oil and holds strategic military and storage facilities
- Oil prices rose after Trump's announcement with Brent crude at $93 and WTI at $90.6 per barrel
US President Donald Trump has warned of fresh strikes on Iran tonight, claiming that America will take control of the country's oil hub — Kharg islands, along with its oil and gas markets.
"The United States will be hitting Iran (Whose Navy, Air Force, Radar, Anti Aircraft, and all other forms of Defense, together with most of its offensive capability, are GONE!), VERY HARD TONIGHT," Trump stated in a truth social post.
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.
Crude oil rates jumped after Trump's announcement with Brent crude futures trading 0.14% higher at $93 per barrel and West Texas Intermediate rising 0.72% to $90.6 per barrel.
Trump's warning comes after United States launched a second round of airstrikes on Iran into Thursday morning after he had said that Tehran would “pay the price” for stalled negotiations, and Iran responded with strikes targeting Bahrain, Kuwait and Jordan.
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The new US assault across multiple Iranian cities came as efforts to negotiate an end the war again appeared stuck, with certain key issues like Iran's frozen assets, enriched uranium stockpile and its insistence on maintaing a chokehold over the Strait of Hormuz
Oil markets have been extremely sensitive to announcements and developments in the West Asia war. The Hormuz blockade massively disrupted global energy supplies and sent oil prices soaring.
The initial round of attack over Tehran was conducted after an American Apache helicopter was downed by its military forces earlier in the week. Minutes after issuing fresh threats on Thursday, Trump said that he would rather strike a deal with Iran than attack it again.
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