Irans Oil Empire Beats at the Heart of Kharg Island

Iran’s Kharg Island: A Strategic Energy Hub

Located in the Persian Gulf, approximately 55km northwest of the Bushehr port, Kharg Island is a 22-square-kilometre coral outcrop that plays a crucial role in Iran’s energy sector. The island has been referred to as the “Forbidden Island” due to strict military control and restricted access.

The island processes 90% of Iran’s crude exports, handling approximately 950 million barrels every year. Its deep surrounding waters provide a natural geographic advantage, allowing colossal supertankers to dock safely and load crude destined primarily for Asian markets. China is the leading importer of Iranian oil.

According to the Iranian Ministry of Petroleum, the island’s facilities act as the vital nerve centre for the sector. The terminal receives crude from three major offshore fields – Aboozar, Forouzan, and Dorood – which is then transported via a complex network of subsea pipelines to onshore processing facilities before being stored or shipped to global markets.

Despite facing international sanctions, Iran has expanded the island’s infrastructure in recent years. In May 2025, S&P Global Commodity Insights reported that Tehran added two million barrels to the terminal’s storage capacity by rehabilitating tanks 25 and 27. The island’s strategic maritime value has made it a coveted prize for conquerors throughout history.

Archaeological records confirm that the island’s name has evolved over time, recorded variously as Kharg, Khark, Kharaj, and Kharej in local dialects and European maps. Its natural freshwater springs and prime location have facilitated the export of agricultural goods and minerals since ancient times.

Historically, the island was seized by the Portuguese and later the Dutch, who established a trading post and fort on the island in the 18th century. However, their colonial foothold was short-lived, as they were expelled from the island in 1766 after a successful attack by Mir Muhanna, the governor of Bandar Rig.

Today, Kharg Island remains an essential part of Iran’s energy sector, with its facilities handling a significant portion of the country’s oil exports. The island’s strategic location and natural advantages make it a critical component of Iran’s maritime trade.

Source: Al Jazeera