Kharg: Why Iran's strategic island is always under the spotlight and what are the implications for the world

Imagine an island that, despite its modest size, is not just a piece of land in the middle of the Persian Gulf, but the real pulsating heart of the economy of an entire country. Kharg Island is not just a geographical point, it is a nerve center through which most of Iran’s vital oil flows pass. Its strategic importance is so great that any threat to it instantly reverberates in global energy markets, forcing analysts and politicians to hold their breath. Why is this tiny piece of land so often the focus of tension and why is its fate a barometer of stability in one of the most dangerous regions of the planet?

Kharg Island, located about 25 kilometers off the coast of Iran in the Persian Gulf, is not only a geographical feature but also a cornerstone of Iran's economy and foreign policy influence. This small island, only about 25 square kilometers in area, is Iran's largest crude oil export terminal and the gateway to world markets for about 90% of all the country's oil supplies.¹Its importance goes far beyond simple export figures, embodying a complex tangle of economic, geopolitical and military interests that make it a constant object of close attention and a potential target in any regional conflict.

Geographical hub of conflicts: Kharg Island on the world map

Kharg Island's location in the northern Persian Gulf is both its key advantage and its Achilles' heel. Geographically, Kharg is at the crossroads of important sea routes leading to the Strait of Hormuz, a critical point for global oil trade. This strait is a narrow neck through which about 20% of the world's oil consumption and a significant portion of its liquefied natural gas pass.². Control or influence over the routes in this region gives Iran significant leverage over global energy security. The proximity to the coastline allows Iran to effectively defend the island, using both coastal artillery systems and units of the Islamic Revolutionary Guard Corps (IRGC) and the navy. However, the same proximity makes it vulnerable to rapid and precise strikes from the air or sea, and to sabotage.

Iran has invested heavily in modernizing and expanding Kharg’s infrastructure, transforming it into a high-tech complex with multi-million-dollar oil storage facilities, pumping stations, and berths capable of receiving supertankers. This makes the island not just a loading point, but a full-fledged oil processing and distribution center. Locating large oil storage tanks here, protected from ballistic threats and cyberattacks, is a priority for the Iranian authorities, as any damage could lead not only to huge economic losses, but also to a regional environmental disaster.

The Heart of Iran's Oil Empire: The Economic Artery

The economic importance of Kharg Island for Iran is difficult to overestimate. It is not just a port - it is a vital artery that ensures the inflow of foreign exchange to the country, which is under severe international sanctions. Through Kharg, Iran exports most of its crude oil, which is the main source of state revenue. According to various estimates, the daily throughput capacity of the terminal on the island can reach up to 5 million barrels of oil³, although the actual volume of exports fluctuates depending on market demand and the intensity of sanctions pressure. In 2023, despite sanctions, Iran was able to significantly increase oil exports, reaching figures close to a five-year maximum, a significant part of which passed through the Khargu terminals.

Iran's dependence on oil revenues is almost absolute. Oil finances state programs, military spending, social projects, and maintains the relative stability of the economy. Therefore, any disruption to the terminals on Kharg—whether through military action, sabotage, or even serious technical failures—could have catastrophic consequences for Iran's budget and internal stability. This is understood both in Tehran and in the capitals of countries that view Iran as a rival or threat. Thus, the island is not just an infrastructure facility, but a central element of Iran's strategic security.

Historical polygon: Kharg under the sights of the past

The history of Kharg Island is a vivid testament to its strategic vulnerability and importance. During the Iran-Iraq War (1980-1988), Kharg became one of the hottest spots of the conflict, the target of nearly 600 Iraqi airstrikes and rocket attacks.⁴. Saddam Hussein understood that destroying Iran's oil infrastructure, especially Kharg, was key to crippling Iran's economy and weakening its ability to wage war. Despite the intensity of the attacks, the Iranians managed to keep the terminal operating, albeit intermittently, demonstrating impressive resilience and the ability to quickly repair damage.

This past experience has shaped Iran’s current approach to defending Kharg. A multi-layered defense system has been developed, including air defenses, coastal artillery, IRGC speedboats to patrol the surrounding waters, and special forces. Iran has also invested in underground storage and backup systems to minimize the effects of possible strikes. However, no defense is perfect, and technological advances in weapons of mass destruction pose new challenges to protecting such a vital but static facility.

Strategic Vulnerability in an Age of Tension: Why Kharg Remains a Target

In the context of the current geopolitical tensions between Iran and the United States, as well as their allies in the region, Kharg Island remains a potential, high-priority target. While there is no widely known confirmed direct US strike on Kharg in recent history, its strategic importance makes it an obvious target for consideration in the event of an escalation of the conflict. The logic of any confrontation with Iran will inevitably lead to consideration of the possibility of affecting its ability to finance its activities, which, in turn, leads to oil infrastructure.

Scenarios in which Kharg could be targeted include:

• Response to Iran's regional moves: If Iran takes steps that would be seen as a threat to regional security or the interests of the US and its allies (e.g., attacks on shipping, nuclear provocations), strikes on Kharg could be seen as a means of pressure or punishment.
• Economic blockade: In the broader conflict, the paralysis of oil exports could become a target for Iran's economic weakening.
• Response to cyberattacks or hybrid threats: The growing role of cyberwarfare means that Khargu terminals can also become targets for sophisticated cyberattacks aimed at disrupting their operations without the use of traditional military means.

Any such attack, even without the complete destruction of all facilities, could cause large-scale fires, environmental disasters, and significant disruptions to operations, which would have global implications for oil prices and supply stability.

Iran's Defense Strategy: Protecting a Vital Artery

Iran recognizes the critical importance of Kharg and is investing significant resources in its defense. The defense strategy is multi-layered and includes both traditional and asymmetric elements. A powerful air defense system has been deployed around Kharg, including both Iranian and Russian-made anti-aircraft missile systems, such as the S-300, as well as numerous anti-aircraft artillery installations. The airspace over the island is constantly patrolled by Iranian fighter jets, ready to intercept any potential threats.

Maritime defense is provided by the Iranian Navy and the IRGC. Patrol boats, fast attack boats, and submarines are constantly present in the surrounding waters. Iran also possesses a significant arsenal of anti-ship missiles that can be deployed on shore or on mobile platforms to protect the sea approaches to the island and tankers. In addition, the Iranians are known for their doctrine of asymmetric warfare, which involves the use of mines, small but fast kamikaze boats, and other means to create significant problems for any potential aggressor in the Persian Gulf. This includes the possibility of blocking the Strait of Hormuz in response to an attack on Kharg, which poses a strategic threat of a global scale.

Global Consequences: The Cost of Destabilizing the Persian Gulf

Any serious threat or attack on Kharg Island would have far-reaching global consequences that would extend far beyond the Persian Gulf region. First of all, this concerns world oil prices. Iran is one of the largest exporters of oil, and disruption of its supplies would inevitably lead to a sharp jump in prices, which, in turn, would provoke economic instability throughout the world. Rising energy prices would negatively affect the economies of importing countries, including Ukraine, where the cost of fuel directly affects logistics, production and the final cost of goods for consumers.

In addition to the economic consequences, an attack on Kharg could lead to a large-scale escalation of the regional conflict. Iran would undoubtedly respond to such a strike, perhaps by using its proxy forces in the region or by attacking other oil facilities in the Persian Gulf owned by Saudi Arabia, the UAE, or other neighbors. This could provoke a full-scale war, destabilizing the entire Middle East and drawing world powers into the conflict. No less important is the environmental threat. Damage to oil terminals and tankers on Kharg could lead to a large-scale oil spill in the Persian Gulf, which would have catastrophic consequences for the marine ecosystem, fisheries, and the health of millions of people living on the coast.

Kharg Island is not just an Iranian asset; it is a critical element of the global energy and geopolitical architecture. Its fate is an indicator of stability in the region and a reminder of how closely intertwined local conflicts are with international security and the economy. Protecting this island is not just a matter of survival for Iran, but also a factor affecting the well-being of billions of people around the world.

Sources

1. Reuters: Iran's oil exports seen near five-year high despite US sanctions, 2023
2. US Energy Information Administration (EIA): The Strait of Hormuz is the world's most important oil transit chokepoint
3. United States Institute of Peace (USIP): Kharg Island: Iran's Main Oil Export Terminal, 2013
4. Journal of Conflict Studies: The Tanker War and Kharg Island, 1980-1988
5. International Institute for Strategic Studies (IISS): The Military Balance 2024