U.S. strike near Iran’s Kharg Island heightens risk of oil supply disruption

(Bloomberg) – A U.S. strike near Iran’s Kharg Island, the country’s main crude export hub, has heightened concerns about potential disruptions to global oil supply as conflict in the Middle East continues to strain energy markets. 

U.S. President Donald Trump said Friday that American forces had targeted military installations on the island in the Persian Gulf but avoided striking oil infrastructure. He warned Iran that Washington could reconsider that restraint if Tehran interferes with ships transiting the Strait of Hormuz.

Iran responded by warning that attacks on its oil and energy infrastructure would trigger retaliation against U.S.-linked energy facilities across the region.

The escalating tensions come as global energy markets are already under pressure following two weeks of conflict that has disrupted shipping through the Strait of Hormuz, a corridor that normally carries roughly one-fifth of the world’s oil and natural gas exports.

Although neither side reported direct damage to oil facilities at Kharg Island, the strike underscores the vulnerability of critical export infrastructure in the region. Kharg handles roughly 90% of Iran’s crude exports, most of which are shipped to China.

Tanker monitoring firm TankerTrackers.com reported that two large crude carriers, including one capable of transporting about 2 million barrels, were berthed at Kharg hours after the U.S. strike, while Iranian media said export operations were continuing.

Analysts say the immediate impact on oil supply may remain limited if the island’s loading terminals, storage tanks and pipelines remain operational.

However, the incident raises the risk of further escalation involving key energy infrastructure across the Gulf. Facilities such as Saudi Arabia’s Ras Tanura export terminal and Abqaiq processing hub, as well as the Fujairah oil hub in the United Arab Emirates, are viewed as critical nodes in the global oil supply system.

“If Kharg Island were taken offline, it could quickly force Iran to curtail production and place a significant portion of its exports at risk,” analysts at JPMorgan said in a research note.

Shipping activity through the Strait of Hormuz has slowed dramatically since the conflict began, with vessel-tracking data showing minimal tanker traffic through the vital oil corridor.