US. strikes on Iran's Kharg Island do not represent a change in American strategy, U.S. Vice President JD Vance said on Tuesday as a U.S. official separately told Reuters the additional strikes on military targets did not impact oil infrastructure.
Kharg Island handles roughly 90% of Iran’s crude oil exports
The tiny outcrop off Iran’s coast has been an economic lifeline for Tehran, and could be the target of a potential US ground operation. It has an estimated storage capacity of around 31 million barrels and at the start of March was at 58% capacity, according to trade intelligence firm Kpler.Kharg Island is a five-mile stretch of land off the Iranian coast around a third of the size of Manhattan, described by US officials as the “nexus for all the Iranian oil supply.”
The official, who spoke to Reuters on condition of anonymity, described at least some of the strikes as targeting sites that had been previously struck before and said the attack occurred in the early morning hours of Tuesday.
Its long jetties jutt into waters that are deep enough to accommodate oil supertankers, making the island a critical site for oil distribution.
The island has long been key to Iran’s economy. A declassified CIA document from 1984 published online said the facilities are “the most vital in Iran’s oil system, and their continued operation is essential to Iran’s economic well-being.”
Alternative export routes that bypass the Strait of Hormuz exist, but they are limited and have not been robustly tested on a large scale, according to the International Energy Agency (IEA).
For example, in 2021, Iran inaugurated the Jask oil terminal, allowing crude oil to be transported to Jask on the Gulf of Oman just east of the strait, but the terminal is not considered a viable export option for Iranian crude, the IEA said.
