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First Post
23-06-2025
- Business
- First Post
Kharg Island: The oil nerve Israel won't touch, yet
Despite multiple strikes on Iran's energy infrastructure, Israel has avoided targeting Kharg Island, Tehran's most critical oil export terminal, which analysts warn could severely cripple Iran's oil-dependent economy, according to a report read more Kharg Island serves as Iran's main oil export terminal, managing over 90% of the nation's crude oil exports. Despite multiple strikes on Iran's energy infrastructure, Israel has avoided targeting Kharg Island, Tehran's most critical oil export terminal, which analysts warn could severely cripple Iran's oil-dependent economy, according to an Economic Times report. In recent operations, Israel has reportedly struck multiple Iranian energy sites, including the Shahran fuel and gasoline depot, home to at least 11 storage tanks, as well as the Shahr Rey refinery, one of Iran's largest. The South Pars Gas Field, a cornerstone of Iran's energy production and among the largest in the world, has also been targeted. STORY CONTINUES BELOW THIS AD Kharg Island, however, remains untouched. Located in the Persian Gulf, the island handles the bulk of Iran's crude oil exports and is considered one of the most sensitive and strategically important sites in the country's energy sector. During the Iran-Israel conflict in October last year, reports emerged that Israel was considering a strike on Kharg. The speculation was enough to prompt the temporary withdrawal of several oil tankers from the waters surrounding the terminal — a clear sign of the potential fallout of such an escalation. According to Reuters, citing Homayoun Falakshai, head of crude oil analysis at tracking firm Kpler, all of the loadings from Kharg Island last week took place from the site's eastern jetty. Local reports have also suggested that oil loadings are being redirected to the eastern jetty on the island, believed to be safer than the exposed western jetty. Iran is ramping up exports at a feverish pace, averaging 2.23 million barrels per day in the first five days after Israel's latest military campaign. That's a 44 per cent jump from prior levels. 'NIOC may believe it is less risky than the other main jetty located on the western side, in open waters,' Reuters quoted Falakshai as saying, referring to Iran's state oil firm National Iranian Oil Co. STORY CONTINUES BELOW THIS AD Large oil tankers have been arriving at Kharg Island one at a time, leaving the western jetty unused for several days, while 15–16 other Iranian tankers remain scattered across the wider Persian Gulf, according to a Bloomberg report. The island is seeing intense activity as Iran accelerates oil exports to secure revenues amid fears of potential disruption. Unlike normal operations, many tankers are now anchoring farther offshore and making only quick stops to load before rapidly departing the area, added the report. Iran's exports surged after Israel launched its offensive. In the first five days of the campaign, Iran exported an average of 2.23 million barrels of oil per day, a 44% increase from previous levels. Were Kharg Island to be targeted this time, Iran would lose a key source of revenue but then have little reason not to strike back in kind. Why Kharg terminal matters Located off Iran's coast near Bushehr and close to the strategic Strait of Hormuz, Kharg Island is the country's main offshore oil export hub. STORY CONTINUES BELOW THIS AD Built in the 1950s and rebuilt after sustaining heavy damage during the Iran–Iraq war, the terminal is equipped to handle the world's largest oil tankers, including VLCCs and ULCCs. With multiple berths capable of loading 8–9 supertankers simultaneously and a storage capacity of around 28 million barrels, Kharg is a critical node in Iran's oil infrastructure. Over 90% of Iran's crude oil exports pass through Kharg, fed by a vast pipeline network from the country's main oil fields. In a heavily sanctioned economy, Kharg's output provides a vital stream of hard currency, helping fund Iran's national budget and geopolitical ambitions. Its proximity to the Strait of Hormuz — the world's most important oil chokepoint — adds strategic significance, giving Iran leverage over global energy flows. Despite sanctions limiting Iran's overall oil production, any major disruption at Kharg could trigger global market instability, pushing up oil prices and raising fears about the security of supply from the Persian Gulf. STORY CONTINUES BELOW THIS AD Striking Kharg high-stakes gamble In October 2024, amid soaring tensions between Iran and Israel, speculation swirled that Israel might target Kharg Island, Iran's most critical oil export terminal. Iranian oil officials made high-profile visits to the island, and tankers were seen leaving the area as security alerts intensified. Although no strike took place, the episode highlighted both Kharg's vulnerability and its central role in Iran's strategic and economic calculus. In this conflict, Israel has launched multiple strikes on Iranian energy assets, including the South Pars gas field. Yet despite Kharg's strategic significance, Israel has so far held back from targeting it. A direct hit on Kharg would not only devastate Iran's oil exports but could also provide Tehran with justification to disrupt or block traffic through the Strait of Hormuz, a narrow chokepoint that handles roughly 20% of the world's oil supply. Such a move would have far-reaching consequences, sending global oil prices soaring and destabilising energy markets and shipping routes, reported Economic Times. STORY CONTINUES BELOW THIS AD According to the report, the stakes of striking Kharg extend beyond Iran. A move that bold could provoke Tehran to retaliate against oil infrastructure in neighboring Gulf states, such as Saudi Arabia's Ras Tanura terminal, potentially drawing the region into a broader conflict. The resulting escalation could spiral into a full-scale war, pulling in more actors and further destabilising the West Asia, added the report. Israel's current strategy appears to favour calibrated pressure: striking key energy and nuclear-related sites while avoiding actions that could trigger uncontrollable escalation or alienate international allies. This measured approach suggests that Kharg remains a deliberate red line, the Economic Times reported. While Iran has worked to build redundancy through facilities like the Jask terminal on the Gulf of Oman and offshore tanker-based storage, Kharg remains its economic lifeline. Any disruption there would have a cascading effect on global oil flows. For energy-importing nations and market watchers, even the threat of an attack on Kharg causes price volatility and raises geopolitical risk premiums. STORY CONTINUES BELOW THIS AD In short, Kharg is not just an oil terminal, it is the heart of Iran's export economy and a geopolitical flashpoint. For now, Israel appears to recognise that attacking it would carry consequences too great to risk. With inputs from agencies
Time of India
23-06-2025
- Business
- Time of India
Israel is not yet willing to touch Iran's most sensitive nerve
Live Events Why does the Kharg Terminal matter so much Targeting Kharg will be a high-stakes move If Israel hits this one key energy site in Iran, it can break the back of the Iranian economy, but so far it has kept off this target. Israel has already hit several Iranian energy sites such as the Shahran fuel and gasoline depot, which has at least 11 storage tanks, and Shahr Rey, one of the country's largest oil refineries. Israel has also struck the South Pars Gas Field, which is one of the world's largest and critical to Iran's energy production. However, the most sensitive energy site of Iran is the Kharg Island from where Iran exports most of its the Iran-Israel conflict in October last year there was talk of Israel planning to hit Kharg island, resulting in a number of oil tankers vacating the waters around the oil-loading terminal on Kharg of the loadings from Kharg Island last week took place from the site's eastern jetty, Homayoun Falakshai, head of crude oil analysis at tracking firm Kpler, had told Reuters. "NIOC may believe it is less risky than the other main jetty located on the western side, in open waters," Falakshai said, referring to Iran's state oil firm National Iranian Oil Co. Large oil tankers were approaching Kharg Island one at a time, leaving the second jetty on the western side of the island unused for several days, with 15-16 more Iranian tankers scattered across the wider Persian Gulf Island is buzzing with activity as Iran is trying to get as much oil as possible, ensuring revenues would continue, at least for a while, if shipments are disrupted. Many oil tankers are now anchoring far from Kharg Island, unlike in normal times, and are making only brief stops to load oil before quickly leaving the area, as per a Bloomberg report. Iran's exports surged after Israel launched its offensive. In the first five days of the campaign, Iran exported an average of 2.23 million barrels of oil per day, a 44% increase from previous levels. Were Kharg Island to be targeted this time, Iran would lose a key source of revenue but then have little reason not to strike back in Island is a continental island located off Iran's coast near Bushehr, close to the entrance of the Strait of Hormuz . It serves as Iran's principal offshore oil export terminal. Constructed in the 1950s and reconstructed after heavy damage during the Iran–Iraq War, the terminal is equipped with modern infrastructure capable of handling very large crude carriers (VLCCs) and ultra large crude carriers (ULCCs). The terminal includes multiple berths, capable of loading 8–9 supertankers simultaneously, and has a storage capacity of approximately 28 million oil from Iran's major production fields is transported to Kharg via an extensive pipeline network. The terminal handles over 90% of Iran's crude oil exports, making it the country's single most important oil infrastructure Kharg terminal is essential for Iran's economy. With international sanctions severely limiting Iran's access to global markets, oil exports remain one of the few major sources of hard currency for the country. The revenues from Kharg's operations fund significant portions of Iran's national budget and support its geopolitical ambitions. Its location near the Strait of Hormuz, the world's most critical oil chokepoint, gives Iran considerable strategic leverage. The ability to control or disrupt energy flows through this region makes Kharg not only an economic asset but also a geopolitical Iran's oil output is constrained by sanctions, a disruption at Kharg could have outsized effects on global oil markets. Any significant attack or closure of the terminal would raise concerns about the safety of oil supplies from the Persian Gulf, driving up global energy October 2024, during heightened tensions between Iran and Israel, there was serious speculation that Israel might target Kharg. Iran's top oil officials made publicized visits to the island, and several tankers were observed vacating the area amid rising alerts. While tensions eased without a direct strike, the incident underscored how vulnerable and central Kharg is to Iran's strategic the current conflict, Israel has launched a series of strikes on Iranian oil and gas infrastructure, including attacks on the South Pars gas field. However, despite the strategic value of the Kharg terminal, Israel has notably refrained from targeting it. A direct attack on Kharg could provide Iran with a legitimate justification to block or restrict traffic through the Strait of Hormuz. This narrow passage handles approximately one-fifth of the world's oil shipments. Closure or disruption here would have catastrophic implications for global energy markets, shipping and regional stability. A strike on Kharg would almost certainly lead to a sharp spike in global oil prices. This would impact not only Iran and its adversaries but also economies worldwide, especially those heavily reliant on energy a move could escalate the conflict dramatically, prompting Iran to retaliate by targeting oil infrastructure in neighboring Gulf states, such as Saudi Arabia's Ras Tanura terminal. The regionalization of the conflict would draw in more actors and could spiral into a full-scale war. Israel's strategy in this phase of the conflict appears to be one of calibrated pressure. By striking critical but less politically explosive infrastructure, it weakens Iran's capabilities without crossing red lines that could provoke uncontrolled escalation or alienate international partners. Iran has developed alternatives to Kharg, including the Jask oil terminal on the Gulf of Oman, which allows exports to bypass the Strait of Hormuz. It has also developed storage capacity aboard a shadow fleet of tankers and at floating facilities, allowing it to continue exports even under the US and other producers have increased output to reduce global reliance on Gulf oil, the Strait of Hormuz and the Kharg terminal remain integral to the flow of energy. Any threat to Kharg causes anxiety in global markets, leading to volatility and risk Kharg terminal is not merely an oil export facility. It is Iran's economic artery. While Israel has demonstrated a willingness to target Iran's nuclear and energy infrastructure, avoiding Kharg suggests a recognition of the enormous risks involved. Striking Kharg could trigger a closure of the Strait of Hormuz, spark retaliatory strikes across the Gulf, cause global energy shocks and economic disruption, and escalate the conflict beyond the point of control. For now, Kharg remains a red line that Israel does not appear willing to cross.(With inputs from agencies)
Business Recorder
20-06-2025
- Business
- Business Recorder
Iran adapts to maintain oil exports during conflict: trackers
LONDON: Iran is maintaining crude oil supply by loading tankers one at a time and moving floating oil storage much closer to China, two vessel tracking firms told Reuters, as the country seeks to keep a key source of revenue while under attack from Israel. The conflict between Iran and Israel which broke out last week poses a fresh hurdle for Iran, which uses a shadow fleet of tankers to conceal their origin and skirt US sanctions reinstated in 2018 over its nuclear programme. Crude exports from Iran, OPEC's third-largest producer, mainly head to China. Loadings have so far been largely unaffected by the conflict with Israel, the trackers said. Iran has loaded 2.2 million barrels per day of crude oil so far this week, marking a five-week high, the latest data from analytics firm Kpler showed. Energy infrastructure in both countries has been targeted in missile exchanges between the two countries, including the Haifa oil refinery in Israel and Iran's South Pars gas field, though Iran's major crude exporting facility at Kharg island has so far been spared. All of the loadings from Kharg Island this week took place from the site's eastern jetty, said Homayoun Falakshai, head of crude oil analysis at tracking firm Kpler. Kharg Island is situated deep inside the Persian Gulf, some 30 km off the Middle Eastern nation's south west coast. 'NIOC may believe it is less risky than the other main jetty located on the western side, in open waters,' Falakshai said, referring to Iran's state oil firm National Iranian Oil Co. Large oil tankers are now approaching Kharg Island one at a time, leaving the second jetty on the western side of the island unused for several days, with 15-16 more Iranian tankers scattered across the wider Persian Gulf area. Iranian oil exports have been steady so far this year at around 1.7 million bpd, the International Energy Agency said on Tuesday, despite US sanctions on Chinese customers since March. Iran has moved part of its 40 million barrel floating storage fleet, which sits on 36 different vessels, much closer to China to minimise the impact of any disrupions on buyers, ship tracking firm Vortexa told Reuters. Around ten tankers, carrying approximately 8 million barrels of Iranian crude, are now stationed directly offshore China, Vortexa said, moving from the Singapore area where a further 20 million barrels are located. The remaining 12 or so million barrels were in the Persian Gulf at the start of the month, Vortexa added, but their current location was not clear.
