US Obliterates Iranian Kharg Island Military Sites, Spares Oil Terminals Handling 90% Exports
President Trump ordered US forces to obliterate Iranian military installations on Kharg Island, which handles roughly 90% of Iran’s oil exports, while sparing export terminals to maintain commercial passage. Combined with a 90% collapse in Strait of Hormuz tanker traffic, the strike prompted a record 400-million-barrel IEA stock release.
1. Strike Details
US Central Command executed an aerial bombardment that obliterated all identified military installations on Kharg Island, Iran’s primary crude export hub handling about 90% of its oil shipments. President Trump explicitly spared the island’s oil terminals, warning that further obstruction of commercial shipping would trigger targeting of critical infrastructure.
2. Impact on Oil Transport
Daily tanker transits through the Strait of Hormuz collapsed by 90%, falling to fewer than 10 vessels compared to a 2026 average of 84, effectively tightening global supply. The effective closure since March 2 has amplified volatility in oil markets and raised concerns over long-term chokepoint security.
3. Market and Policy Responses
In response to the supply squeeze, the International Energy Agency coordinated a record 400-million-barrel release from strategic stockpiles. Analysts suggest the Federal Reserve may face pressure to maintain restrictive policy as fertilizer and plastic feedstock costs climb, and the US Navy is preparing armed escorts for commercial vessels to deter retaliatory strikes.