U.S. Turns Kharg Island into a 'Bargaining Chip' to Force Iran to Reopen the Strait of Hormuz?

Kharg Island – Iran’s Oil Heartbeat
Kharg Island, located approximately 15 nautical miles off Iran's mainland and covering an area of about 22 square kilometers, is considered the economic backbone of the country. It handles up to 90% of Iran’s crude oil exports, totaling around 950 million barrels annually.

Known by many Iranians as the “forbidden island,” Kharg is heavily guarded by the Islamic Revolutionary Guard Corps (IRGC), with access restricted to only those with security clearance.

Kharg Island Targeted by U.S. Military
On March 14, Kharg became the latest focal point in the ongoing U.S.-Israel-Iran conflict, after U.S. President Donald Trump claimed that American airstrikes had targeted military facilities on the island. The attack marked an escalation in tensions and came as a part of the broader campaign against Iran.

Rising Concerns Over Escalating Tensions and Oil Price Surge
Over the past two weeks, Kharg had largely remained untouched by the ongoing attacks. Experts initially believed that occupying or striking the island could require significant ground forces—an option that the U.S. had not yet considered.

"Not long ago, at my directive, U.S. Central Command carried out one of the most powerful airstrikes in Middle Eastern history, destroying all military targets on Iran's 'crown jewel' island, Kharg," Trump posted on Truth Social on March 13. "Our weapons are the most powerful and sophisticated in the world, but out of goodwill, I chose not to destroy the oil infrastructure on the island. However, if Iran or anyone else interferes with the free and safe passage of ships through the Strait of Hormuz, I will immediately reconsider this decision."

Escalation of Conflict and Oil Price Chaos
Mark Kimmitt, a former U.S. military official, commented that the attack on Kharg Island had significantly raised the stakes in the conflict, with the potential to send oil prices spiraling out of control.

“This means we've escalated tensions in this conflict significantly. It's no longer just about attacking the military or the regime; now, we could be targeting the economic lifeblood of the country,” Kimmitt told CNN.

He speculated that Washington might be using Kharg Island as a "bargaining chip" to force Iran to allow ships to pass freely through the strategic Strait of Hormuz—a key shipping lane through which about 20% of the world’s crude oil and liquefied natural gas is transported.

“If the oil infrastructure on the island is hit, Iran will undoubtedly target energy facilities across the Middle East," Kimmitt warned. "And at that point, oil prices will completely spiral out of control."

Energy Economist Ed Hirs' Perspective
Ed Hirs, an energy economist and lecturer at the University of Houston, noted that the U.S. airstrike on Kharg could disrupt Iran’s oil exports.

“Trump said he avoided targeting the island's oil infrastructure, but it's such a small island. Unless the military facilities are extremely small, I find it hard to believe that the oil export system was not affected,” Hirs told Al Jazeera.

Hirs added that oil prices could continue to rise if Iran’s export capacity is hampered, especially since Iraq and Kuwait have not yet restored their oil activities, and if the conflict drags on for weeks or months. Such a scenario could severely harm the economies of Asian countries that rely heavily on crude oil and petroleum products.

Kharg Island’s Oil Infrastructure Remains Intact
Despite the intense airstrikes, Iranian state media reported that the country’s oil infrastructure on Kharg Island remained undamaged. The U.S. military focused its efforts on hitting Iran's defense positions, the Joshen naval base, an air traffic control tower, and a helicopter hangar, causing 15 explosions on the island.

However, Iran has warned that it will not remain passive if its oil infrastructure is attacked.

On March 14, the spokesperson for Iran’s Central Command, Khatam al-Anbiya, issued a statement seemingly in response to Trump’s comments about the U.S. airstrike on Kharg. According to the spokesperson, if Iran’s oil infrastructure is attacked, "all oil and energy infrastructure related to U.S. oil companies or those cooperating with the U.S. in the region will be destroyed and turned to ashes."

Global Market Impact
The broader energy market continues to brace for the potential fallout of these escalating tensions. The International Energy Agency (IEA) had already released 400 million barrels of oil from strategic reserves to counteract disruptions in the Middle East.

The attack on Kharg Island underscores the growing conflict, with significant implications for global energy markets. As both the U.S. and Israel push forward with military actions, all eyes are now on Iran’s response and the broader consequences for the region and the world.