Six months into the war with Iran, US president Donald Trump has posted a fake AI video to social media, claiming that a key Iranian island was being destroyed. The claim that Kharg Island was “blow to smithereens”, accompanied by a clip of refineries exploding into flames on Truth Social, was quickly debunked by his own officials. The US has struck Kharg before, however, with Vice President JD Vance confirming in April “military targets” on the outlet had been hit.Trump himself has previously suggested the strategically-important location, which experts have described as Iran’s “Achilles Heel”, could be seized by the US altogether if need be. Below we look at the importance of the island, which handles around 90 per cent of Iran’s oil exports and why it has caught the president’s attention. What do we know about Kharg Island? Kharg is located 16 miles from the coast of Iran in the northern end of the Gulf, a rocky outlet measuring less than eight square miles with a population of around 8,000. Also known as ‘Forbidden Island’, it is northwest of the Strait of Hormuz, the strategically important shipping route that Iran has effectively closed to pile pressure on the US as the war drags on.Iran exports 90 per cent of its crude via Kharg, which makes it a key target given the soaring fuel prices the conflict sparked. With this in mind, Tehran has fortified the island with additional surface-to-air missiles and laid traps including anti-personnel and anti-armour mines in the waters surrounding it, CNN has reported, citing people familiar with US intelligence.A satellite image shows an oil terminal at Kharg Island (Planet Labs PBC)Why taking Kharg could cut off Iran’s oil lifelineShipping through the Strait of Hormuz has largely come to a halt since the Islamic Revolutionary Guard Corps (IRGC) took “complete control” of the major waterway earlier this year. Global supply chains have been severely affected and experts have warned of a devastating economic impact across the world if it continues. Oil prices surged to well over $100 a barrel since the war began, and the IRGC has warned that it could reach $200 if hostilities escalate. “Should he [Trump] take Kharg, rather than destroy it, he can not only ensure the regime can never again pay the salaries of its bureaucrats and soldiers,” former Pentagon official Michael Rubin wrote in an article for the American Enterprise Institute in January this year, before Trump’s assault. “The IRGC, of course, could target Kharg with ballistic missiles, but that would sign their death warrant. Not only would Trump respond in kind, but such action would end Iranian oil exports for months to come, again leaving salaries unpaid.”It was reported in March that US administration officials had discussed seizing Kharg Island, according to Axios, but this would present a number of practical challenges. Trump shared a video showing apparent strike on Kharg Island in mid-March (@realDonaldTrump/Truth Social)Could the US seize Kharg Island?While US forces could likely take Kharg quite quickly, analysts say that an occupation is more likely to expand and prolong the war than it is to deliver a decisive victory or leverage in negotiations.A former commander of the US Central Command, Joseph Votel, told TWZ.com in June that while only 800 to 1,000 troops would be needed on Kharg Island, they would require logistical backup that would need protection as well.Votel said that US troops would be very vulnerable and doubted that taking the island would provide any particular tactical advantage. It would be "kind of an odd thing to do... But we could certainly do it if we had to," he said.Troops already navigating traps would also likely have to contend with an onslaught of missiles and drones. Iran’s parliament speaker Mohammad Bagher Ghalibaf has warned.Gulf allies have warned the administration not to put troops on the ground in Iran, saying it could trigger more retaliation from Tehran, possibly against their energy and civilian infrastructure, a senior Gulf official told Reuters on condition of anonymity.Trump has previously boasted that US strikes in mid-March had “obliterated” Iranian military outposts on the island, but left its oil infrastructure alone for now. An Iranian military boat patrols next to the Artavil oil tanker, off Kharg Island in the Persian Gulf (EPA)Island could be used as bargaining chip in talksOther analysts have suggested the island could be used as a bargaining chip as oil exports make up nearly 40 per cent of Iran’s government budget. However, it would make American and Israeli troops vulnerable to attacks by Iranian forces. “If President Trump were to decide to seize this pivotal hub, it would deal a significant blow to the Iranian regime, as it would deprive them of a critical source of revenue,” oil analyst Tamas Varga toldCNBC in March.“Such a move would be reminiscent of the US intervention in Venezuela at the beginning of the year, when it effectively took control of the country’s oil sector.”The island was previously attacked by Saddam Hussein in 1984, sparking the oil tanker war in the ongoing conflict between Iran and Iraq. But this isn’t the first time Kharg appears to have been in Trump’s sightline. He previously made a throwaway remark about the island nearly 40 years ago while promoting his book The Art of the Deal in an interview with The Guardian. “They’ve been beating us psychologically, making us look a bunch of fools,” he said of Iran in 1988. “One bullet shot at one of our men or ships, and I’d do a number on Kharg Island. I’d go in and take it.”Trump posted an AI clip claiming Kharg was “being destroyed” (@RealDonaldTrump, Truth Social)Capturing island ‘would send markets into tailspin’Neil Quilliam, an energy policy and foreign affairs analyst at Chatham House, told The Independent that while it is “unlikely” Trump would take over the territory, any attempt would “likely send the markets into a tailspin”. It could also block any future resolution between the countries, leading to an endless standoff. “The US would effectively control Iran’s major export terminal, but the Iranian leadership would remain in control of the country’s production so there would be a standoff,” he said. It could also be a “major cause for concern” for Gulf countries, setting a dangerous precedent. “It is Iran’s Achilles heel in this war, but fighting for and occupying Kharg could cause irreparable damage to the terminal and hurt any successor regime’s chances of managing the economy,” he continued. “Previous presidents have steered away from Kharg, understanding its strategic importance to global oil markets.”