Kharg Island is Iran’s ‘spare heart’: Read why the US and Israel hesitate to strike this tiny island in the Persian Gulf

As tensions between Iran, the United States and Israel continue to rise, a tiny island in the Persian Gulf has quietly become one of the most strategically important places on the planet. Kharg Island, a small coral island only a few kilometres wide, sits roughly 25 kilometres off the coast of Iran’s Bushehr province. Despite its size, it plays a huge role in Iran’s economy and the global energy market. Nearly 90 % of Iran’s crude oil exports pass through this island. There are oil Pipelines from Iran’s major oil fields, including Ahvaz, Maroun and Gachsaran, that transport crude oil to Kharg Island, where it is stored in massive tanks before being shipped across the world. Because of this, it is said that Kharg Island is the “treasury” of Iran, the place where the lifeline of Iran’s economy flows. Now, as the conflict involving Iran, the United States, and Israel has entered its second week, Kharg Island has become an important topic in military and political discussions. However, attacking Kharg Island could have consequences that go beyond military implications. Why Kharg Island matters so much Kharg Island is more than just an oil port. It is essentially the control centre of Iran’s oil exports and a major pillar of the country’s economy. The island contains huge storage tanks that have the capacity to store as much as 30 million barrels of crude oil. From the island, oil tankers carry crude oil to markets for sale across Asia and other parts of the world. Even though Iran has faced strict international sanctions for years, the country still earned around $78 billion from crude oil sales in 2024. Most of this money was earned through the crude oil sold from the Kharg Island. This money funds government operations, economic programs and also supports Iran’s military projects, including missile and drone development. Experts say that if the island’s oil terminals were destroyed, Iran’s ability to export oil would collapse overnight. Without that income, the country would struggle to finance many of its operations, including those linked to the Islamic Revolutionary Guard Corps (IRGC). Former Pentagon adviser Michael Rubin indicated that attacking the Kharg Island would be similar to cutting off the Iranian government’s financial lifeline. In recent days, Iran has been reported to have increased crude oil shipments from the Kharg Island to almost 4 million barrels per day. This is believed to be a strategy by Iran to raise as much money as it can for the war. The Strategic weak point in Iran’s system Military planners often describe Kharg Island as Iran’s most important and vulnerable point. Because so much of Iran’s oil trade passes through this single location, damaging the island could deal a severe economic blow to the country. This is why some Israeli leaders believe the island should be targeted. Israeli opposition leader Yair Lapid has openly suggested that destroying Kharg could cause the Iranian regime to weaken quickly because it would lose its primary source of income. The military strategists have also warned that attacking Kharg Island would carry serious risks. Iran considers the island one of its most critical assets, and any attack on it could trigger a much wider conflict across the Middle East. A target that the US have avoided for decades The importance of Kharg Island is no new information. American presidents have been well aware of its importance for decades, but none has dared to attack it directly. During the Iranian hostage crisis in 1979, American President Jimmy Carter was advised to capture Kharg Island to force the Iranian government to release American hostages. However, Jimmy Carter later declined the idea. His advisors were worried that the move could lead to a huge war in the Persian Gulf region. In the 1980s, during the Iran-Iraq War, Kharg Island was attacked several times by the Iraqi army under Saddam Hussein’s leadership. Iraq launched air strikes on the island, causing significant damage to its oil terminals. But Iran managed to repair the damage and resume oil exports within days. This history demonstrated how determined Iran is to keep the island operational, even during wartime. Later, when Iran placed naval mines in the Strait of Hormuz during the Reagan administration, the United States carried out military strikes on several Iranian naval targets. Again, Kharg Island was not attacked. Over time, Kharg gained a reputation as a sensitive target that many countries prefer to avoid because the consequences of an attack may get out of control. Fear of a regional energy war One of the main reasons Kharg Island has remained untouched so far is the fear of retaliation. Iran has already given the message that if its oil infrastructure is attacked, it would respond by targeting the energy infrastructure of the entire region. This could include the oil infrastructure of countries like Saudi Arabia, the UAE, and the rest of the Gulf countries. Such attacks could disrupt the energy supplies of the entire world and could continue for several months. Kharg Island is also close to the Strait of Hormuz, which is one of the most important routes in the world. Almost 20 % of the world’s oil shipments pass through this narrow waterway every day. If the situation becomes volatile in the region around Kharg Island, the oil supply could be severely disrupted. Economists have already warned that if Kharg Island is severely damaged, the price of oil could increase manifold and could trigger an “energy tsunami.” Even minor military action in the vicinity of Kharg Island could push the entire world economy into instability. Trump’s difficult strategic choice For US President Donald Trump, Kharg Island represents both an opportunity and a major political risk. Trump has always been vocal about his “maximum pressure policy” against Iran. He wants to weaken Iran economically in the hope of changing its foreign policy. Cutting off Iran’s oil revenue by targeting Kharg Island could achieve that goal. Reports from Axios indicate that officials inside the Trump administration have discussed several options involving Kharg Island. These include launching a commando raid using special forces or even seizing control of the island temporarily. The idea behind such plans is simple: if Iran loses its oil revenue, it may struggle to finance its military programs and continue its conflict with Israel. The decision is not a simple one. Domestic politics and rising fuel prices The second major concern for Trump is the impact that it could have on the fuel prices of the world. Experts from the Centre for Strategic and International Studies believe that an attack on Kharg Island could immediately push global oil prices up by at least $10 per barrel. There is also the fear that the prices could increase to as high as $100 per barrel if the war escalates. For the American public, that would mean higher prices at gas stations across the country. With midterm elections approaching in the United States, rising fuel costs could damage Trump’s political support. The president faces a difficult balancing act. On one side, targeting Kharg Island could weaken Iran significantly. On the other hand, it could cause economic problems. The Nuclear factor Another dimension to the situation is added by Iran’s nuclear program.  According to reports, Iran currently possesses around 450 kilograms of uranium enriched to 60 %. The Trump administration is reportedly studying a broader strategy that could include securing Iran’s nuclear material along with crippling its oil exports. Some discussions reportedly involve a plan known as Operation Epic Fury, aimed at neutralising Iran’s nuclear stockpiles while also limiting its economic power. Trump has publicly stated that “all options are open,” indicating that Washington has not ruled out any strategy, including a potential move against Kharg Island. A tiny island with global consequences Kharg Island remains untouched despite the rising conflict. While Israel has reportedly targeted fuel depots in Tehran and Alborz in recent days, Kharg Island has not been touched.. Many defence officials believe that Israel has deliberately avoided Kharg Island. This is because the US Department of Defence believes that if missiles were launched at Kharg Island, there would be unpredictable consequences. If missiles were launched at Kharg Island, Iran might believe that it has nothing left to lose. This could result in an attack on oil facilities all over the Middle East. For now, Kharg Island has become a powerful pressure point, not necessarily an attack target. This is because there are unpredictable consequences that could result from an attack on Kharg Island. As the conflict continues, world leaders are watching closely. Whether Kharg Island remains a shield that continues to protect Iran’s economy or becomes the spark that triggers conflict remains to be seen.