What is Iran's Kharg Island, which Trump says US bombed
What's the story
United States President Donald Trump has announced that American forces have "obliterated" targets on Iran's Kharg Island, which he described as the country's "crown jewel." The island is a key hub in Iran's oil network, housing the main terminal for managing its oil exports. The strike reportedly targeted military sites but spared energy facilities, signaling a possible future attack on parts of Iran's energy infrastructure.
Economic lifeline
Hub for Iran's oil exports
Located 26km off Iran's coast, Kharg Island is the export terminal for 90% of the country's oil shipments. Despite fears of attacks, Tehran has continued exporting crude oil through this hub. Satellite images show very large crude oil tankers loading at Kharg Island, with exports between 1.1 million and 1.5 million barrels per day since February 28, when hostilities began.
Critical infrastructure
'Most vital' part of Iran's petroleum system
A declassified CIA note from 1984 had described Kharg Island's oil facilities as "the most vital" part of Iran's petroleum system. The island has an extensive oil storage capacity and is connected by pipelines to some of Iran's largest oil and gas fields. Crude oil reaches the terminal from three large offshore fields, namely, Aboozar, Forouzan, and Dorood, and is then processed on land or shipped internationally.
Strategic assets
Attack could push global oil prices higher
The island is home to three major energy facilities, including Falat Iran Oil Company, which produces 500,000 barrels of crude oil daily. In May 2025, Iran expanded the terminal's storage by two million barrels after refurbishing tanks. Energy experts have warned that an attack on Kharg Island could push global oil prices higher and severely impact Iran's economy and military financing.
Economic fallout
JPMorgan warns of severe retaliation risks
JPMorgan's global commodity research team has warned that an attack on Kharg Island would have serious economic consequences. They noted such a strike would likely lead to severe retaliation in the Strait of Hormuz or against regional energy infrastructure. The island has historically been viewed as a critical vulnerability but rarely directly targeted until now.