US obliterates military sites on Kharg Island, spares oil terminals
US forces destroyed all military installations on Iran's Kharg Island, which handles 90% of Tehran's crude exports, while leaving oil terminals intact. Daily tanker transits through the Strait of Hormuz plunged by 90% to under ten vessels, driving Brent crude near $100 and prompting a 400-million-barrel strategic release.
1. Military Strike Details
President Trump ordered US Central Command to obliterate every military target on Kharg Island, neutralizing air defenses and missile sites while expressly sparing the oil export infrastructure to ensure continued commercial shipping.
2. Impact on Oil Exports
Kharg Island handles roughly 90% of Iran's crude exports, and the strike coincided with a 90% collapse in daily tanker transits through the Strait of Hormuz, dropping from an average of 84 vessels to fewer than ten.
3. Market and Policy Response
Brent crude climbed near $100 per barrel on the supply squeeze, prompting the International Energy Agency to coordinate a record 400-million-barrel release from strategic reserves and fueling speculation that the Fed may sustain tighter policy as core inflation pressures mount.
4. Shipping Security Measures
The US Navy is preparing armed escorts for commercial vessels transiting the Strait of Hormuz, while investors monitor potential Iranian reprisals against energy infrastructure and shipping lanes in the Gulf.