US military strikes on Iran’s Kharg Island, the country’s primary oil export hub, could disrupt global oil markets and affect China, which buys the majority of Tehran’s crude exports.
The United States has now started targeting Iran’s most strategic economic asset, Kharg Island. Situated in the northern Persian Gulf, Kharg Island deals with 90% of Tehran’s oil export and President Donald Trump has characterised the attack as an attempt to pressure the Iranian administration to end the blockade of Strait of Hormuz.
Described by Trump as the “crown jewel” for Iran, a dozen targets were struck on Friday night by the US military on Kharg Island that likely led to a sharp rise in fuel prices in China. Retail gasoline and diesel saw their sharpest increases since March 2022 on Monday. Trump, in a new threat, said he might hit the Kharg Island again “just for fun.”
HOW DOES US STRIKING IRAN’S KHARG ISLAND IMPACT CHINA?
Kharg, which is a small coral island 33 kilometres off Iran’s coast, is considered the primary terminal for the passage of Tehran’s majority of oil.
Since the US-Israel started attacking the Islamic nation, Iran has exported 13.7 million barrels of oil and multiple tankers were seen at the Kharg in satellite images, AP reported quoting TankerTrackers.com, a maritime intelligence company.
Much of the oil transported from Iran’s Kharg Island is shipped to China which is one of the top crude importers globally. Iran earns a significant portion of its revenue from oil and strikes on Kharg Island would not only damage Iran’s current government but would undermine the viability of whatever succeeds it.
Due to America’s sanction against Iran’s nuclear programme, there are limited buyers for Tehran’s crude oil. Data for 2025 from analytics firm Kpler showed China purchasing more than 80% of Iran’s shipped oil. On an average, Beijing bought 1.38 million barrels per day of Iranian oil last year, Reuters reported.
DOES IRAN HAVE ALTERNATIVE WAYS TO EXPORT ITS OIL?
Apart from Kharg Island, which has come under the US attack, Iran has another terminal in Jask that it uses to ship oil and is situated on the Gulf of Oman, outside the Strait of Hormuz. The terminal in Jask was opened in 2021 and was used lightly before the war in West Asia broke out.
Notable, Jask has become a key alternative route for oil shipping in Iran in recent weeks with the US military launching attacks on dozens of targets on Kharg Island. However, the drawback with Jask terminal is that it has a limited capacity to load, around one million barrels a day, half of the capacity of the Kharg terminal.
