While some argue for destroying the terminal though which 90% of Iran’s oil exports flow, others caution of a global market ‘tailspin’
Kharg Island – through which 90% of Iran’s oil exports flow – is arguably the country’s most sensitive economic target but the export terminal has so far remained untouched throughout the US-Israel bombing campaign.
Experts say bombing or capturing the site with US forces would be likely to cause a sustained increase to already surging oil prices, as it would amount to taking the entirety of Iran’s daily crude exports offline.
“We may see the $120 a barrel price we saw on Monday heading to the $150 if Kharg were attacked,” said Neil Quilliam, with the Chatham House thinktank. “It’s too vital for global energy markets”.
Although the US has struck 5,000 targets in and around Iran, it has so far refrained from bombing the country’s oil infrastructure – though oil prices remain nearly $20 per barrel higher because the fear of Iranian retaliation has in effect closed the strait of Hormuz to tanker traffic.
