NewsCommodities & ForexIran Accelerates Fortification of Kharg Island Oil Terminal Amid U.S. Threats

Iran Accelerates Fortification of Kharg Island Oil Terminal Amid U.S. Threats

Author: OilPrice.com·

Key Takeaways

  • Kharg Island handles about 90% of Iran’s oil exports and remains the country’s main export terminal.
  • Iran is speeding up development and infrastructure work at the site to improve safety, reliability and operational readiness.
  • Authorities are upgrading safety systems and fire detection equipment at the terminal and crude oil storage tanks.
  • President Donald Trump posted AI-generated images on Monday that included a depiction of a strike on Kharg Island.
  • Windward said the number of dark tankers waiting near Kharg Island rose to 24 on Sunday from 21 the previous day.
Iran Accelerates Fortification of Kharg Island Oil Terminal Amid U.S. Threats

Iran is speeding up infrastructure projects at Kharg Island, its main oil export terminal, amid intermittent threats from U.S. President Donald Trump to bomb or seize the island.

The Islamic Republic is pushing to complete development and infrastructure work at Kharg Island, which handles about 90% of Iran’s oil exports, bne IntelliNews reported Tuesday, citing Iran’s Shana News Agency.

“These projects aim to enhance safety, increase equipment reliability, boost operational readiness and ensure the sustainable continuity of the country's oil exports,” Abbas Assadrouz, head of the Iranian Oil Terminals Co. (IOTC), was quoted as saying by the outlet.

Iran is also seeking to upgrade safety systems and fire detection equipment at the terminal and at crude oil storage tanks, a reminder that the site remains central to the country’s ability to keep crude moving even as tensions rise. Officials have warned that a failure in negotiations could lead to extensive bombings and an attack on Kharg Island.

Despite this week’s signals of de-escalation in the U.S.-Iran flare-up of the past two weeks, President Trump shared on Monday a series of AI-generated images on his Truth Social account, including one showing a “strike on Kharg” with American fighter jets bombing an island.

Kharg Island remains Iran’s key oil export conduit, and operations there are carried out in dark mode to avoid detection at the site and the U.S. blockade east of the Strait of Hormuz, which was reinstated two weeks ago when hostilities resumed. In practical terms, that means the terminal’s day-to-day functioning is taking place under tighter security and operational constraints, with shipping activity closely watched because any disruption could ripple through Iran’s export chain.

As many as 21 dark tankers were around Kharg Island as of Saturday, shortly before the latest pause in attacks, according to maritime intelligence firm Windward. On Sunday, the number rose to 24 dark tankers in the waiting area, up from 21 the previous day, with three new arrivals, including a tanker of about 320 meters and two others measuring about 226 meters and 211 meters, according to SAR imagery analyzed by Windward.

By Tsvetana Paraskova for Oilprice.com