President Donald Trump threatened to take “total control” of Iran’s oil and gas markets by seizing Kharg Island, the tiny but enormously consequential terminal through which roughly 90% of Iran’s crude oil exports flow. The threat, posted on Truth Social, sent oil prices briefly spiking above $91 per barrel and triggered a notable dip in Bitcoin, which fell below $63,000 before clawing back some of its losses.
What happened and why Kharg Island matters
Kharg Island sits in the northern Persian Gulf and serves as Iran’s primary crude oil loading point. Its deep-water access allows the largest tankers in the world to dock there, making it one of the most strategically significant pieces of real estate in global energy markets.
Trump had already ordered airstrikes on Iranian military sites at Kharg back in March 2026, though he initially spared the island’s oil infrastructure. The latest threat represents a significant escalation, moving from hitting military targets to potentially crippling Iran’s entire petroleum export capability.
In a subsequent Fox News interview, Trump appeared to walk back the intensity of his remarks somewhat, expressing doubt about America’s willingness to follow through with a full seizure. He ultimately canceled the planned strikes during ceasefire negotiations.
