Commodities
US Targets Iran's Oil Export Hub in Bid for Control
The Trump administration has expressed interest in seizing control of Kharg Island, which serves as Iran's primary oil export hub. Located near the Strait of Hormuz, the island handles around 90% of Iran's crude oil exports.
Iran's energy production has taken a hit due to US sanctions, with May exports plummeting to six-year lows at just over 209,000 barrels per day (bpd). Domestic refineries have a capacity of 2.6 million bpd, but the country's ability to export oil is severely limited.
The US military has previously targeted Kharg Island in strikes on military targets, with no impact on oil infrastructure reported. However, seizing control of the island could disrupt Iran's energy trade and potentially lead to further conflict.