According to Wikipedia, Kharg Island is a continental island of Iran in the Persian Gulf. The island is 25 km off the coast of Iran and 483 km northwest of the Strait of Hormuz.
Importantly, Kharg Island is where 90% or more of Iran’s oil production is processed. Without it, Iran’s oil production/sale/distribution essentially does not exist.
In the past two weeks, the USA has made Iran almost completely impotent in the air and in the sea, giving us full access to both. And we have used that acess to bomb much of Kharg Island’s infrastructure. But, very significantly, we have left its oil assets intact…so far.
How come?
Here is President Trump’s explanation, in his own words:
“I have chosen NOT to wipe out the Oil Infrastructure on the Island.
However, should Iran, or anyone else, do anything to interfere with the Free and Safe Passage of Ships through the Strait of Hormuz, I will immediately reconsider this decision.”
There’s your reason. It is an ultimatum.
Iran accounts for about 12% of the world’s oil supply. It is pretty much the only thing that keeps Iran’s economy going. If Trump decides to take out its oil assets in Kharg Island, the Iranian economy would virtually cease to exist.
So Iran is now faced with a choice: either leave the Strait of Hormuz free for the international oil trade to pass through (which would result in oil prices tumbling back down and the dow flying back up), or have no economy.
If whoever is actually running Iran right now is at all rational, that should be a very clear choice. But is whoever now runs Iran rational?
I guess we’ll find out soon enough.
