US strikes military targets on Iran’s Kharg Island oil hub

The United States destroyed military targets on Iran's main oil hub of Kharg Island, President Donald Trump said, threatening to strike its oil infrastructure if Iran continues attacks that have halted most ship traffic in the Strait of Hormuz.

The island serves as the export terminal for 90% of Iran's oil shipments. In a social media post, Trump wrote the US military "totally obliterated every military target" on Kharg while leaving oil infrastructure intact.

"However, should Iran, or anyone else, do anything to interfere with the free and safe passage of ships through the Strait of Hormuz, I will immediately reconsider this decision," Trump wrote, a warning that could further roil markets already dealing with what the International Energy Agency has called the biggest oil supply disruption in history.

Iran had no ability to defend against US attacks, the president added. "Iran's Military, and all others involved with this terrorist regime, would be wise to lay down their arms and save what's left of their country, which isn't much!" he said.

Oil prices have been whipsawing on Trump's changing comments on the likely duration of the Iran war, which has prompted Iran to attack vessels in the Strait, the conduit for a fifth of the world's oil. Although he has previously said the war would last only weeks, the president on Friday declined to publicly project an end date for the conflict. "I can't tell you that," Trump said to reporters. "I mean, I have my own idea, but what good does it do? It'll be as long as it's necessary."

Kharg is 16 miles (26 km) from Iran's coast, about 300 miles (483 km) northwest of the Strait of Hormuz. Iran continued to export crude oil while other producers in the Gulf halted their shipments due to fear of Iranian attacks.

Multiple very large crude oil tankers were loading at Kharg Island on Wednesday, according to satellite imagery reviewed by TankerTrackers.com. Iran exported between 1.1 million barrels per day and 1.5 million bpd from February 28 when the war began to Wednesday.

Markets will watch closely for any sign the US strikes damaged the island's intricate network of pipelines, terminals and oil storage tanks. Even minor disruptions could further tighten global supply, adding pressure to an already volatile market.

Bob McNally, president of Rapidan Energy Group, said Trump's comments on Friday "will focus the market's mind on pathways that this energy disruption, already history's largest, could expand and last longer." Some energy industry observers expressed doubts that Kharg's oil facilities would stay intact. "Bombing Kharg Island but not the oil infrastructure is like going to McDonald's and getting a hamburger with no meat," said Josh Young, chief investment officer at Bison Interests. "What's the point?"