Amid the ongoing conflict between the US and Iran, a particular island is in the news these days—and with good reason, as it has become President Trump’s direct target. Kharg Island, located in the Persian Gulf, may be a small piece of land, but it is considered the backbone of Iran’s oil-dependent economy. This is because it handles the majority of Iran’s crude oil exports and is a major source of revenue for the country, earning $78 billion (equivalent to more than Rs 7 trillion). The important thing is that Trump’s major attack plan is a serious threat not only to Iran, but perhaps even more to China—because the “Dragon” (China) is the largest buyer of Iranian oil.
Kharg Island: A “small package” with a “big impact”
To begin with, let us know some special things about Kharg Island: This island is spread over an area of only 20 square kilometers, which is about 3 miles wide and 7 miles long. It is located just 25 kilometers from the coast of Bushehr province of Iran. Despite its small size, Kharg Island is more than just a geographical feature; Apart from being a symbol of Iran’s economic and military strength, it is also an important pillar of global energy security. Strategically, it is of great importance as the deep waters surrounding it allow the world’s largest oil tankers to easily anchor and directly fill with crude oil.
Kharg Island is known as Iran’s largest oil terminal. The tank farm present here has the capacity to store approximately 24 million barrels of crude oil. Pipelines connect the island to Iran’s major oil fields—Gachsaran and Ahvaz—which deliver oil to the island, from where it is then shipped to different countries via large tankers. According to reports, the island serves as a hub for much of Iran’s oil exports.
78 billion dollar earning machine for Iran
It would not be an exaggeration to call Kharg Island the economic lifeline of Iran. Before the current conflict, 90% to 95% of Iran’s oil exports were shipped from Kharg Island. Since the beginning of the conflict, Iran has exported 13.7 million barrels of oil from this site, and despite the hostilities, shipments continue to reach buyers. Miyan Maleki, a senior adviser at the Washington-based Foundation for Defense of Democracies, told *TIME* magazine that Kharg Island generates energy revenues of about $78 billion annually for Iran. In other words, the largest share of Iran’s oil export earnings comes from this island.
Not just a common sight: it’s been called the ‘crown jewel’
President Donald Trump has announced that the US military has launched a major attack on Kharg Island, resulting in the destruction of almost all the military bases located there. Trump has described Kharg Island as the Iranian regime’s “crown jewel”—its most valuable asset. He further said that, during the US attack, oil facilities on the island were *not* intentionally targeted.
In a post on social media platform ‘Truth Social’, Trump clarified that the US operation targeted military infrastructure, while energy facilities were deliberately left out. However, he also issued a warning: If shipping movements in the region were threatened—particularly if Iran attempted to disrupt shipping traffic through the Strait of Hormuz—he would immediately reconsider this decision.
The Iranian economy will be completely destroyed…
It wasn’t just Trump; His colleague, US Senator Lindsey Graham, also said in a post on the social media platform Twitter (now X) that the attack on Kharg Island would help shorten the duration of the war. He wrote that if Iran lost control of its oil infrastructure centered on Kharg Island, its economy would be completely destroyed; As the center of its economic activities, the fate of the island is likely to determine the ultimate outcome of the conflict.
Trump’s attack plan: China’s concern increased
Attacks on Iran by the United States and Israel have already heightened concerns about China’s energy security. According to reports, petrol and diesel prices in China have increased by up to 10% due to US attacks on military bases on Kharg Island. This is because China is Iran’s largest oil buyer, and a large portion of Iran’s oil exports—particularly those coming from Kharg Island—end up to China. Oil cargoes loaded from Kharg undergo a ship-to-ship transfer and re-levelling process before reaching China.
China’s concern about Trump’s attack plans can be gauged from the fact that Beijing has even demanded in the United Nations to immediately stop the attacks against Iran, and declared them illegal. Overall, Kharg Island serves as an important link connecting Iran’s oil fields to international markets; As a result, any disruption that occurs there could impact not only China, but other countries as well.