US Strikes Kharg Island, Key Hub for Iran's Oil Exports
The US has struck Kharg Island, a strategic hub for Iran's oil exports. The island is home to an intricate network of pipelines, terminals, and storage tanks that handle around 90% of Iran's oil shipments. According to TankerTracker.com and Kpler data, Iran has continued to ship oil at a rate of 1.1 million to 1.5 million barrels per day despite the ongoing conflict.
Dan Pickering, chief investment officer for Pickering Energy Partners, warned that even minor disruptions to Kharg's infrastructure could further tighten global supply and add pressure to an already volatile market. 'You take out Kharg infrastructure, then you take 2 million bpd out of the market for good, not until the Straits get fixed,' he said.
Iran's armed forces have vowed to retaliate against any attack on its oil and energy infrastructure, warning that it will target energy assets owned by companies cooperating with the US in the region. Patrick De Haan, an analyst with U.S. fuel price tracker GasBuddy, expressed concern that the escalation could lead to further instability in the market.
Kharg Island has a storage capacity of around 30 million barrels and held approximately 18 million barrels of crude as of early March, according to JP Morgan data. Much of Iran's oil exports go to China, which has been taking measures to preserve supplies amid disruption in the Middle East.