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Kharg Island: Iran's Untouched Oil Lifeline

Financial Times Companies •
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Kharg Island, Iran's primary oil export terminal, continues operations despite US sanctions, revealing potential inconsistencies in Washington's Iran strategy. The facility handles most Iranian crude exports, making it an economic lifeline for Tehran amid international pressure.

President Trump's administration has maintained a hands-off approach toward Kharg, even as it targeted other Iranian oil infrastructure. This selective enforcement suggests the US may be calculating the economic fallout from completely cutting off Iranian oil, which could destabilize global markets.

The island's operational status provides a window into complex US policy calculations. Keeping Kharg functional allows Iran to maintain some export revenue while the US avoids potentially dramatic price spikes. This balance reflects tension between maximum pressure and pragmatic economic considerations.