The U.S. has struck Kharg Island—Iran’s main oil export hub in the northern Persian Gulf—during the ongoing war with Iran. President Trump has said the recent strikes hit military targets while leaving oil facilities intact for now, but he has repeatedly warned those oil assets could be targeted next. Any damage to Kharg’s export infrastructure would hit Iran’s economy hard and further tighten a volatile global oil market.
What the U.S. has done and said
In a March 13 Truth Social post, Mr. Trump described Central Command’s action as “one of the most powerful bombing raids in History of the Middle East,” saying military sites on Kharg were “totally obliterated.” He asserted oil infrastructure was spared but warned the island’s pipelines and terminals could be struck if Iran continued to interfere with shipping through the Strait of Hormuz. Trump has also said such pipelines could be destroyed “on five minutes’ notice.”
The administration has offered to escort commercial ships through the strait and urged NATO partners to help; so far other countries have declined and the U.S. has not been escorting vessels through the waterway since the war began.
Why Kharg Island matters
Kharg is central to Iran’s oil exports. Before the war it handled roughly 90% of Iran’s outbound crude. Its deep surrounding waters accommodate very large tankers that cannot dock along much of the shallower Persian Gulf coastline. If Kharg’s export capacity were removed, Iran would lose the bulk of its oil revenue and the global market would feel an immediate shock.
The Strait of Hormuz is itself a critical chokepoint: in 2024 about 20 million barrels per day transited the strait, roughly 20% of global petroleum liquids consumption. Iran has warned it may strike ships passing through the strait that are not carrying Iranian oil, with limited exceptions—threats that raise the risk of broader disruptions.
Potential regional and global impacts
Analysts warn that removing large volumes of Iranian oil from world markets would intensify already tense oil markets. Trita Parsi of the Quincy Institute has said Iran is likely to retaliate, and that attacks by Iran or its regional partners on transit routes, terminals or Gulf oil facilities could sharply reduce flows through the region and push prices much higher. While Iran found workarounds after attacks on Kharg during the Iran–Iraq war in the 1980s, modern strikes could cause severe short-term economic dislocation.
Asian importers—especially China, the largest buyer of Iranian oil—would be vulnerable to disruptions. Parsi also warned that Iran’s retaliation could target Gulf Cooperation Council (GCC) states and their infrastructure; the GCC collectively holds more than 32% of the world’s proven crude reserves. If GCC terminals and transit routes were hit, gasoline prices and wider economic costs could spike—Parsi warned oil could exceed $150 per barrel, pushing U.S. pump prices toward $5–$6 a gallon and raising costs for fertilizer and food.
Bloomberg reported that Goldman Sachs projects a five- to six-week stretch of war could shrink the GDP of Qatar and some GCC countries by about 14%, a shock whose ripple effects would affect the global economy.
Trump’s longstanding focus on Kharg
Mr. Trump has referenced Kharg Island for decades. In a 1988 interview he said a U.S. response to aggression could include striking Kharg, and in 2026 he reiterated that he had long pushed the idea of attacking the island when Iran was “acting up.” When asked whether he would seize the island, he declined a direct answer.
What comes next
Trump praised the March 10 attack as having removed military targets but has kept future plans vague while signaling more strikes are prepared. He has repeatedly suggested oil facilities could be hit quickly, even as he says they were spared so far. Any U.S. strike on Kharg’s export infrastructure would risk major escalation and likely broad retaliation, threatening prolonged disruption of Persian Gulf oil transit and a sharp rise in global energy and commodity prices—inflicting economic pain far beyond the region.