Kharg Island targeted in U.S. strikes as Hormuz tensions lift oil prices
(Bloomberg) — The U.S. carried out strikes near Iran’s Kharg Island early Tuesday, targeting military sites while avoiding key oil export infrastructure, as tensions in the region continue to inject volatility into global energy markets.
U.S. forces hit bunkers, radar systems and ammunition storage facilities on the island, according to reports, in a renewed round of attacks similar to those launched last month. Energy infrastructure at Kharg Island — Iran’s primary crude export hub — was not directly targeted.
President Donald Trump paired the strikes with a renewed warning of a broader military campaign if Tehran fails to reach an agreement to end the conflict, which has now entered its sixth week. The U.S. has repeatedly tied any potential deal to restoring full navigation through the Strait of Hormuz, a critical chokepoint for global oil flows.
Markets remained volatile following the developments, with Brent crude trading near $110/bbl and U.S. crude around $115/bbl. Prices have been supported by ongoing supply risks, even as traders weigh the possibility of diplomatic progress.
Kharg Island is central to Iran’s oil exports, handling the majority of its crude shipments. While the latest strikes stopped short of damaging energy facilities, the proximity of military activity to such infrastructure underscores the growing risk to supply.
The broader conflict has already disrupted shipping across the Persian Gulf, with intermittent missile and drone attacks raising safety concerns for vessels and increasing insurance and transport costs. Traffic through the Strait of Hormuz — which typically carries about a fifth of global oil supply — remains constrained, tightening available flows to market.
Trump has issued a series of deadlines aimed at forcing Iran to reopen the waterway, though those timelines have shifted repeatedly. He said freedom of navigation through Hormuz must be part of any agreement, calling it a “very big priority.”
Iran, meanwhile, has warned it could escalate by targeting energy infrastructure in the Gulf if attacks continue, raising the prospect of a wider supply shock affecting multiple producers in the region.
Recent hostilities have extended beyond maritime routes. Missile and drone exchanges have affected areas near key infrastructure in Saudi Arabia, while strikes inside Iran have included transport and logistics assets that could indirectly impact energy operations.
See also: Hormuz standoff forces Qatar LNG tankers to turn back
Despite the escalation, diplomatic channels remain active, with U.S. officials expressing cautious optimism that a response from Tehran could still emerge. Iran has called for a permanent end to the conflict, along with sanctions relief and guarantees tied to safe passage through Hormuz.
For now, oil markets remain highly sensitive to developments, with prices reacting to each new signal on escalation or de-escalation. While supply has not been materially disrupted at Kharg Island, the risk premium tied to the region’s critical export infrastructure continues to build.
Map source: Global Energy Infrastructure
Bloomberg reporting by Josh Wingrove, Skylar Woodhouse and Tony Capaccio. Edited for length.
