- By Raju Kumar
- Sat, 14 Mar 2026 08:40 AM (IST)
- Source:JND
US-Iran War: The US-Israel war with Iran entered its second week, showing no sign of ending the conflict in the Gulf region, which affected the global fuel trade. On Friday, US President Donald Trump said the United States had destroyed military targets on Iran's main oil hub of Kharg Island. He threatened Tehran, saying the Iranian oil infrastructure will be targeted if Iran continues
attacks that have halted most ship traffic in the Strait of Hormuz, a critical chokepoint, from where approximately 20 million barrels of oil per day pass, representing roughly 20% of global fuel consumption.
In a social media post, Trump wrote the US military "totally obliterated every MILITARY target" on Kharg while leaving oil infrastructure intact. "However, should Iran, or anyone else, do anything to interfere with the Free and Safe Passage of Ships through the Strait of Hormuz, I will immediately reconsider this decision," Trump wrote, a warning that could further roil markets already dealing with what the International Energy Agency has called the biggest oil supply disruption in history.
Why Is Kharg Island Significant?
The Kharg Island, also known as Iran's Crown Jewel, serves as the export terminal for 90 per cent of Iran's oil shipments, which make it a most significant terminal for the West Asian nation. It's location also make it critical for Iran as it is situated just 16 miles (26 km) from Iran's coast, about 300 miles (483 km) northwest of the Strait of Hormuz. Iran continued to export crude oil while other producers in the Gulf halted their shipments due to fear of Iranian attacks. Multiple very large crude oil tankers were loading at Kharg Island on Wednesday. Satellite imagery reviewed by TankerTrackers.com showed Kharg oil unit is carrying out its normal operation. Iran exported between 1.1 million barrels per day and 1.5 million bpd from February 28, when the war began, to Wednesday and the credit goes to Kharg Island.
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A minor disruption at the Kharg Island could further tighten global supply, adding pressure to an already volatile market.
Why Is Kharg Island Called the Crown Jewel?
Kharg Island is referred to as Iran's "Crown Jewel" as it serves as it is a key oil export terminal, serving approximately 90% of its crude oil shipments.
(With Reuters Inputs)