What is Kharg Island and why is the US considering occupying it?

Iran's Kharg Island, which hosts the country’s main crude export terminal and is responsible for the overwhelming majority of its oil shipments to the world. (AFP)
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Updated 27 March 2026
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What is Kharg Island and why is the US considering occupying it?

  • The Island has been a maritime prize for invading forces long before the oil terminal went online in the 1960s

DUBAI: Kharg Island, a small coral outcrop in the Arabian Gulf, has become a focal point in the escalating confrontation between the United States and Iran — not because of its size, but because of its central role in global energy flows.

Located some 30–50 km off Iran’s coast, the island is the country’s primary oil export hub. It handles up to 90 percent of Iran’s crude exports, making it a critical economic lifeline and a strategic vulnerability.

On March 13, US forces carried out a large-scale airstrike targeting more than 90 military sites on the island, including missile storage and naval mine facilities. The strikes deliberately avoided oil infrastructure, in hope of reducing the impact on energy markets.

Now, as the war enters its fourth week, US media sources are reporting that the Trump administration is considering using US troops to seize the island, an escalatory move that risks unleashing strong retaliation from Tehran.

Why Kharg Island matters

Kharg’s importance lies in its unique geography and infrastructure. Unlike much of Iran’s shallow coastline, the island sits in deeper waters, allowing large supertankers to dock. Over time this has made it Iran’s favored oil export location.

The island is connected to Iran’s major oil fields on the mainland via pipelines and contains vast storage facilities, making it a major economic asset to Tehran, which depends heavily on exports for state revenue.

According to Iran’s Ministry of Petroleum, Kharg Island serves as the sector’s central hub with crude oil and refined products are stored and then exported. Despite years of international sanctions constraining output, Iran has continued to expand the island’s infrastructure.

According to Al Jazeera, the terminal’s loading capacity reached 7 seven million barrels per day in 2025. However, current export estimates are significantly lower, at around 1.6 million barrels daily.

The Island has been a maritime prize for invading forces long before the oil terminal went online in the 1960s. The Portuguese briefly seized the island in the 1700s before it came under Dutch administration, with the Dutch East India Company building a heavily garrisoned fort to protect its interests before being expelled in 1766.

Why Trump may consider seizing the island

According to CNN, cited by multiple outlets, US officials see control of Kharg as a way of cutting off Iran’s main source of revenue and forcing Tehran to change its behavior — particularly regarding disruptions in the Strait of Hormuz.

It is thought Washington hopes that by capturing the island it could gain direct leverage over Iran’s oil exports, potentially crippling the economy without having to strike infrastructure across the entire country or launch a costly ground invasion of the mainland.

Mounting risks and Iranian preparations

Iran has responded by fortifying the island, deploying missile systems and laying mines along its shoreline, according to CNN.

Military analysts warn that any ground operation would likely face fierce resistance. One expert cited by CNN said Iranian forces would seek to inflict “maximum casualties” on invading troops.

Tehran has also warned that any attempt to occupy its territory would trigger retaliation against infrastructure in the Gulf, raising the risk of a broader regional escalation.