US President Donald Trump said on March 13 that the US military had destroyed military targets on Kharg Island, Iran's largest oil export center.
In a post on social media, Mr. Trump said US forces had "completely eliminated all military targets" on Kharg Island but did not destroy oil infrastructure. He warned that this decision could change if Iran or any force continues to hinder the safe passage of ships through the Strait of Hormuz.
Kharg Island is home to about 90% of Iran's oil exports. The island is located 26km off the Iranian coast and about 483km northwest of the Strait of Hormuz.
Mr. Trump affirmed that Iran has no ability to defend against US attacks. He also called on Iranian military forces to lay down their arms to avoid further losses.
The war has caused the energy market to fluctuate sharply. Oil prices have continuously changed following Donald Trump's statements about the possibility of prolonging the war. Iran has attacked ships in the Strait of Hormuz, a shipping route that transports about 1/5 of global oil.
Iran continues to export oil from the island of Kharg while many Gulf oil producing countries temporarily suspend transportation due to fears of attacks. Satellite images show many large oil tankers loading goods at the island of Kharg. From the start of the war to midweek, Iran has exported about 1.1 to 1.5 million barrels of oil per day.
Observers are closely monitoring the possibility of the pipeline system, ports and oil storage on Kharg Island being affected. Even small disruptions could make global supply more strained.
Mr. Bob McNally, Chairman of Rapidan Energy Group, said that Mr. Donald Trump's statements could make the market pay more attention to the risk of a prolonged energy crisis. Some energy experts are skeptical about the possibility that oil facilities on Kharg Island remain completely intact after the attacks.
Meanwhile, Iran's new supreme leader Mojtaba Khamenei declared that he would maintain the closure of the Strait of Hormuz and called on neighboring countries to close US military bases on their territory.
