The U.S. has struck military targets on Kharg Island, Iran’s main oil export hub in the northern Persian Gulf, during the ongoing war with Iran. President Trump has said the island’s oil infrastructure was left intact but has repeatedly threatened that could change — a prospect with major consequences for Iran’s economy and the global oil market.
What the U.S. has done so far
On March 13, Trump posted that U.S. Central Command had completed “one of the most powerful bombing raids in History of the Middle East,” saying it “totally obliterated” military targets on Kharg Island. He claimed the operation spared the island’s oil assets but warned those could be struck if Iran continued to impede safe passage through the Strait of Hormuz.
The Strait of Hormuz is a critical chokepoint for energy shipments. In 2024 an average of about 20 million barrels a day passed through the strait — roughly 20% of global petroleum liquids consumption. Iran has threatened to attack ships transiting the strait unless they carry Iranian oil, with some stated exceptions. The U.S. has offered to escort vessels and asked NATO allies to participate; so far, other countries have declined and no escort operations have been launched since the war began.
Trump has said he is considering strikes on Kharg’s oil pipelines and infrastructure. “We can do that on five minutes’ notice. It’ll be over,” he told reporters, adding that destroying the pipes would take a long time to rebuild and could be reversed later to allow reconstruction.
Why Kharg Island matters
Kharg Island is effectively Iran’s economic lifeline. Before the war it handled about 90% of Iran’s oil exports. Its waters are deep enough for very large crude carriers, whereas much of Iran’s coastline cannot receive such tankers. Damaging Kharg’s facilities would dramatically curtail Iran’s oil export capacity and hit government revenues hard.
Trita Parsi, executive vice president of the Quincy Institute, warned that destroying Kharg’s oil infrastructure would escalate the conflict and have catastrophic effects on global oil supplies. If Iran retaliated — which Parsi said is highly likely — Iran could threaten or attack Gulf oil transit routes and facilities across the region, severely disrupting exports.
Parsi noted that Iran has previously endured attacks on Kharg Island during the 1980s Iran-Iraq war and found workarounds to continue exporting oil. Even so, U.S. strikes now would not only damage Iran’s economy but could trigger wider regional retaliation that would affect many countries.
Regional and global ripple effects
The Gulf Cooperation Council (GCC) — Bahrain, Kuwait, Oman, Saudi Arabia, Qatar and the United Arab Emirates — controls more than 32% of the world’s proven crude oil reserves. GCC Secretary General Jasem Mohamed Albudaiwi condemned attacks on member states and described Iran’s actions as violations of international norms. If Iran targeted GCC oil infrastructure and terminals in retaliation, global oil prices would spike.
Parsi and others warn that oil could rise far above current levels — scenarios discussed include prices over $150 per barrel — with downstream effects such as gasoline prices rising to $5–$6 per gallon in the U.S. Higher oil prices would also raise costs for products that rely on petroleum inputs, including fertilizer, driving up food prices and causing broader economic pain. Bloomberg cited a Goldman Sachs projection that a prolonged war could cause a double-digit GDP contraction in some Gulf economies, triggering global economic knock-on effects comparable to major shocks like the COVID-19 pandemic.
Which countries would feel the pain?
China is Iran’s largest buyer of crude, making Asian markets highly exposed to disruptions. But retaliation that targets shipping lanes and terminals would affect all customers relying on Gulf oil — Europe, Asia and beyond. Parsi said Iranian retaliation would likely aim at GCC states’ economic and energy infrastructure broadly, not only at countries buying Iranian oil.
Trump’s long-standing focus on Kharg
Trump has spoken about Kharg Island for decades. In a 1988 interview he said a single attack on a U.S. ship or servicemember would justify hitting Kharg. In 2026 he has referenced those earlier comments, saying he warned years ago that Kharg should be targeted and reiterating that the island represents a major threat.
What happens next
Trump has praised the initial March 10 attack that reportedly destroyed military assets on Kharg but has signaled more strikes are possible. He said U.S. forces “took out every single thing in Kharg Island, except one thing. We left the pipes,” and has warned that “something’s going to happen” regarding those pipelines, without detailing plans.
Options available to the U.S. include further strikes on military targets, attacks on oil infrastructure, or naval escorts through the Strait of Hormuz. Each choice carries risks: hitting oil facilities would inflict severe economic harm on Iran but would almost certainly provoke broad retaliation, endangering Gulf oil flows and raising global energy prices. Avoiding strikes leaves Iranian military capabilities in place and allows continued threats to shipping.
Bottom line
Kharg Island is a strategic linchpin for Iran’s oil exports and for global energy markets. U.S. strikes that stop short of oil infrastructure still send a strong signal; striking pipelines or terminals would be a major escalation with potentially profound economic and geopolitical consequences. The prospect of such action, and of Iranian retaliation against Gulf oil facilities and transit routes, makes Kharg Island a focal point in a conflict with global implications.