US President Donald Trump on Saturday announced that American forces had carried out strikes on Iran’s key oil export hub at Kharg Island. According to Trump, the operation targeted military facilities linked to Iran’s energy trade.

The US president said American forces had “obliterated” military installations on the island, located in the Persian Gulf, which handles the overwhelming majority of Iran’s crude oil shipments to international markets. While the strikes did not hit oil infrastructure directly, Trump warned that energy facilities could be targeted next if Iran disrupts shipping through the Strait of Hormuz — one of the world’s most vital energy corridors.

Kharg Island has long been viewed as Iran’s economic lifeline. Analysts warn that any sustained attack on the island could severely damage the country’s oil exports and deal a significant blow to its economy.

Following the announcement, Iranian officials issued a sharp warning, saying further attacks could lead to the destruction of oil and energy infrastructure across the wider region. The threat came amid escalating tensions between Washington and Tehran after several recent military exchanges.

Located about 30 kilometres off Iran’s mainland near the port city of Bushehr, Kharg Island is relatively small — roughly eight kilometres long — but plays an outsized role in Iran’s energy sector.

Often described as Iran’s “oil lifeline”, the island handles around 90 percent of the country’s crude exports. Oil from major offshore fields such as Aboozar, Forouzan and Dorood is transported through subsea pipelines to Kharg, where it is stored before being loaded onto large tankers, most of which are destined for Asian markets.

The island’s geography makes it particularly valuable. The surrounding waters are deep enough to accommodate supertankers — something many Iranian ports along the shallow Gulf coastline cannot handle.

Over the years, Iran has developed Kharg into one of the world’s largest oil terminals. At peak capacity, the facilities can load up to seven million barrels of oil per day, although current exports are estimated at about 1.6 million barrels daily.

Because such a large share of Iran’s export infrastructure is concentrated on this single island, analysts have long regarded it as a critical vulnerability. Any major disruption could rapidly cut off much of Iran’s oil revenue, which remains a central pillar of the country’s economy and a key funding source for powerful institutions such as the Islamic Revolutionary Guard Corps.

Why the island is strategically sensitive

The United States and Israel had previously avoided direct strikes on Kharg, largely because of the potentially severe economic and geopolitical consequences.

Energy experts say that targeting the island’s oil infrastructure could immediately halt most of Iran’s crude exports. Such a move might trigger strong retaliation from Tehran, particularly in the Strait of Hormuz, through which about one-fifth of the world’s traded oil and liquefied natural gas typically passes.

Iran has already demonstrated its ability to disrupt shipping in the region. Missile and drone attacks in recent weeks have slowed maritime traffic through the strait and heightened fears of a broader energy crisis.

Tehran has repeatedly warned that any attempt to damage its oil infrastructure would provoke an “eye-for-an-eye” response, potentially including strikes on energy facilities in neighbouring Gulf states.

That risk likely explains why the latest US operation focused on military installations on the island rather than its vast oil storage tanks and loading terminals. Trump himself acknowledged this strategy, saying he had deliberately avoided destroying the energy facilities.

A strategic prize in a wider conflict

Beyond its economic significance, Kharg Island also holds considerable military and historical importance. Over the decades, the island has been heavily fortified and is guarded by Iran’s Revolutionary Guards.

Its strategic location has made it a coveted asset for centuries. European powers such as the Portuguese and the Dutch once attempted to control the island because of its position along historic trade routes through the Gulf.

In modern history, Kharg has also seen repeated conflict. During the Iran–Iraq War, Iraqi forces repeatedly bombed the island in an effort to cripple Iran’s oil exports. Although the facilities were heavily damaged, they were later rebuilt and expanded.

Today, Kharg Island remains a tightly controlled zone with very limited civilian presence, dominated by oil terminals, pipelines and military installations — making it both an economic lifeline and a strategic flashpoint in the region.