Iran’s Kharg Island handles nearly 90% of the country’s crude exports.
Strategic hub can load about 7 million barrels of oil daily.
US and Israel avoid strikes to prevent wider Gulf escalation.
Seizing Kharg could cripple Iran’s economy and oil lifeline.
Why US-Israel Avoid Striking Iran’s Tiny Kharg Island—Explained
Despite having the advantage of blocking the Iranian authority economically in the middle of the war, the US and Israel decided to draw a redline in the area
NASA
Summary
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Iran's Kharg Island, a small coral island in the Persian Gulf, has become a point of discussion since it has remained untouched by the United States and Israeli forces even though the West Asian conflict has continued for nearly over 10 days now.
Kharg Island, located about 25 km off Iran’s coast, is the main hub of Tehran's oil industry since the 1960s, when it was developed with the help of US oil company Amoco. Around 90% of the country's crude exports pass through it before tankers then travel through the Strait of Hormuz. Reportedly, the island is also said to have a loading capacity of roughly 7 million barrels per day. Despite days of air strikes across Iran, the island’s facilities appear to be operating, the Financial Times reported.
Richard Nephew, a former US deputy special envoy for Iran, told the FT that without it "the economy bottoms out".
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Undersea pipelines link the island to the principal oilfields of southern Iran. Vast jetties extend far out into deep waters, enabling supertankers to pull up and take on crude oil, whilst sprawling storage tanks and accommodation for workers dominate much of the island's southern reaches.
Taking control of the island "would cut off Iran's oil lifeline," dealing a critical blow to the regime, Petras Katinas, a research fellow specialising in climate, energy and defence at a London-based defence think tank RUSI, told CNBC.
"Of course, with shipping via the Strait of Hormuz now stopped, they cannot sell oil anyway, but looking ahead, seizure would give the US leverage during negotiations, no matter which regime is in power after the military operation ends," Katinas added.
Why Is It Spared
Despite having the advantage of blocking the Iranian authority economically in the middle of the war, the US and Israel decided to draw a redline in the area. Analysts point out various reasons for the same.
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Katinas clarified that a seizure would require a ground troop operation, which the Trump administration seems hesitant to undertake at least for now.
Analysts also warn that both the US and Israel are wary that such a strike could trigger Iranian retaliation against the oil infrastructure of Gulf states.
"That would be a significant escalation," Nephew said.