Kharg Island, a key Persian Gulf hub, handles about 90 % of Iran’s crude oil exports and processes millions of barrels daily. Despite regional military tensions, its oil terminal remains operational, as US and Israeli leaders avoid strikes that could disrupt global markets, according to The Economic Times.

Analysts warn that attacking or seizing Kharg could crush Tehran’s oil revenue, shift the conflict’s dynamics, and spike oil prices, but it carries major geopolitical risks. They write:

A small coral island in the Persian Gulf has emerged as one of the most strategic assets in the ongoing West Asia war involving Iran, the United States and Israel. Kharg Island handles the vast majority of Iran’s crude oil exports and remains untouched despite an expanding military campaign targeting Iranian military and nuclear infrastructure. Analysts say any decision by US President Donald Trump regarding the island could shape both the conflict and global oil markets. […]

Washington has long treated the island as a red line because of the risks involved. Destroying or seizing Kharg could severely damage Iran’s economy but might also trigger retaliation against energy infrastructure across the Gulf.

Whether the US chooses to leave Kharg untouched, strike it, or attempt to seize it could shape both the trajectory of the war and the stability of global oil supplies.

Read more here.