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BEA small island in the Persian Gulf could suddenly become one of the most important places in the global oil market.
Kharg Island is Iran’s main oil export hub. Roughly 90% of Iran’s crude exports pass through this facility, with terminals capable of loading up to 7 million barrels per day.
That makes it a critical piece of global energy infrastructure.
U.S. and Israeli officials are reportedly considering targeting the island as part of the ongoing conflict with Iran. Analysts say disabling Kharg Island could halt most of Iran’s oil exports, cutting off tens of billions of dollars in annual revenue for Tehran.
But the move could come with major risks.
Energy analysts warn that an attack could trigger retaliation targeting the Strait of Hormuz or other regional oil infrastructure, potentially disrupting global supply routes.
For now, markets appear to believe the disruption would be temporary.
WTI crude has pulled back below $90 per barrel after briefly topping $100, suggesting traders expect oil flows to normalize.
But if Kharg Island were actually taken offline, the reaction in global energy markets could look very different.
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@benzinga
