The US has made a renewed push this week for a diplomatic end to the Iran war, yet the threat of further escalation persists as more US troops reportedly head to the Mideast Gulf.
The Pentagon is understood to be sending soldiers from the 82nd Airborne Division. Reports of ground force deployments have fuelled speculation the US could try to seize one or more of Iran's strategic islands to secure shipping through the strait of Hormuz. That has put Kharg Island — Iran's main oil export hub — under the spotlight.
What is Kharg Island and where is it?
Recently described by US president Donald Trump as Iran's "crown jewel", Kharg Island lies about 30km off Iran's coast in the northern Mideast Gulf. It has served as Iran's primary crude and condensate export and storage terminal since the early 1960s.
Pipelines from major producing hubs feed the island. Oil is gathered, stored and then loaded onto tankers for export. Around 15,000–20,000 people live on Kharg, most of them oil workers.
Why is Kharg Island so important?
Calling Kharg Island Iran's primary oil export terminal understates its role. Before the US reimposed sanctions on Iran's oil sales in 2018, about 70–75pc of Iran's crude and condensate exports loaded at Kharg. But its share has risen since 2023. Kpler data indicate about 92pc of Iranian oil exports originated at Kharg in 2023–25.
Deep water around the island allows very large crude carriers (VLCCs) to dock and load. Much of Iran's Mideast Gulf coastline is too shallow for this, which is why exports are centralised at Kharg rather than multiple mainland ports.
Kharg also has significant storage — about 32mn–34mn bl of crude capacity at end of 2025, plus 5mn–7mn bl of oil products — and hosts a petrochemical plant.
What are Kharg's vulnerabilities, and who would be worst hit?
Kharg's central role also makes it a potential weak point for Tehran. Because such a large share of Iran's crude and condensate exports flow through a single point, the island has regularly been considered a strategic target in times of conflict. During the 1980s Iran–Iraq war, the island was repeatedly attacked as part of what became known as the "Tanker War".
The US has already targeted Kharg in this war, striking more than 90 military sites on the island earlier this month, including storage facilities for naval mines and missiles, according to US Central Command. Energy assets on the island were not targeted, but Trump has threatened to attack oil infrastructure there if Iran does not stop threatening vessels crossing the strait of Hormuz.
Any strike on Kharg's oil infrastructure would hit Iran's main source of revenue. It would also indirectly affect China, which has emerged as the sole destination for discounted Iranian crude despite sanctions. Tankers carrying Iranian crude have continued to transit the Hormuz strait since the start of the conflict, likely headed for China.
Is Kharg replaceable? Are there any alternatives?
Iran has other exports terminals, but none could replace Kharg if it were seized or damaged.
The most consequential is Jask, located outside the strait of Hormuz. Iran has invested heavily in it, both to bypass the chokepoint and ease the burden on Kharg. Crude reaches Jask via a 1mn b/d pipeline from Bushehr province. Iran began loading at Jask in the second half of 2024, but volumes have not met expectations. Only a handful of cargoes have loaded since.
Iran also uses smaller terminals — Sirri, Lavan and Soroosh — mainly for crude top-ups. Tankers seldom load full cargoes there. Iran's Assaluyeh terminal typically handles condensate exports.
