Israel this morning that Iran will pay a heavy price for its missile attack on populated areas:

  • Israel may hit energy facilities in response

If Israel attacks Kharg Island, that would be a big thing:

Kharg Island is critically important to Iran’s oil industry—both strategically and economically. Here's why:

Location & Infrastructure

  • Situated in the Persian Gulf, about 25 km off the Iranian mainland.

  • It serves as Iran’s largest oil export terminal, handling the vast majority of the country’s crude exports.

  • Features include:

    • Massive storage facilities

    • Multiple loading docks for Very Large Crude Carriers (VLCCs)

    • Pipelines connecting to Iran’s southern oil fields

Export Capacity

  • Handles over 90% of Iran’s oil exports under normal conditions.

  • Daily capacity: up to 6 million barrels per day, though actual volumes vary due to sanctions.

  • Crucial for loading and shipping Iranian crude to Asian and global buyers (when allowed).

Strategic & Security Role

  • Kharg Island's position near the Strait of Hormuz makes it vital for maritime oil logistics.

  • It has been a target during past conflicts (e.g., the Iran–Iraq War) due to its high strategic value.

  • Iran guards the island heavily due to its importance to the national economy and revenue stream.

In Summary

Kharg Island is the backbone of Iran’s oil export system, functioning as a high-capacity, strategically located hub that connects its oil fields to global markets. Any disruption to Kharg Island—through conflict, sabotage, or sanctions—would severely constrain Iran's oil export capability and revenue.

Source: Forex Live