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Why this island is America's red line in Iran war
Kharg Island is Iran's main oil export terminal

Why this island is America's red line in Iran war

Mar 09, 2026
02:08 pm

What's the story

The United States and Israel are currently engaged in an all-out war against Iran, targeting its nuclear facilities, oil installations, and other strategic sites. However, one tiny coral island in the northern Gulf has so far remained untouched: Kharg Island. Located about 25km off Iran's coast, Kharg Island is Iran's main crude oil export terminal and handles most of the country's oil shipments.

Economic lifeline

Vital for Iran's crude exports

Kharg Island has been Iran's main export hub since the 1960s when US oil company Amoco built it. The island can load up to seven million barrels of oil a day, making it vital for Iran's crude exports. Richard Nephew, a former US deputy special envoy for Iran, told Financial Times that "the economy bottoms out without it."

Targeted infrastructure

Infrastructure highly concentrated and exposed

Kharg Island's infrastructure is also highly concentrated and exposed, with dozens of storage tanks on the southern side and long jetties stretching into deep water for supertankers. Subsea pipelines connect the island to some of Iran's largest oilfields on the mainland. Despite ongoing airstrikes across Iran, satellite imagery indicates that Kharg Island remains operational.

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Escalation risk

Attacking Kharg Island could lead to major escalation

Despite its economic importance, the US and Israel have avoided targeting Kharg Island. Experts believe that attacking the island could lead to a major escalation in the conflict. Nephew warned that such an attack could prompt Iran to retaliate against Gulf states' oil infrastructure, which would be "a significant escalation."

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Market concerns

Disrupting Kharg Island could spike crude prices

Energy analysts also warn that disrupting Kharg Island could lead to a spike in crude prices and strain relations with China, which buys most of Iran's oil. Michael Doran, a senior fellow at the Hudson Institute, said the administration does not want to destroy the basis for a post-war Iranian economy. Meanwhile, some Israeli voices have called for strikes on Iran's energy infrastructure to cripple its economy.

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