"Experts say bombing or capturing the site with US forces would be likely to cause a sustained increase to already surging oil prices, as it would amount to taking the entirety of Iran's daily crude exports offline. We may see the $120 a barrel price we saw on Monday heading to the $150 if Kharg were attacked, said Neil Quilliam, with the Chatham House thinktank. It's too vital for global energy markets."
"Kharg, a five-mile-long coral island in the Persian Gulf 27 miles from the mainland, is where pipelines from Iran's oilfields in the centre and the west of the country terminate. Established by a US oil conglomerate, Amoco, it was seized by Iran during the 1979 revolution. While most of Iran's coastline is silty and too shallow for very large crude tankers used by the oil industry, Kharg is sufficiently close to deep waters."
"Typically, between 1.3m and 1.6m barrels of oil a day pass through Kharg, though Iran increased volumes to 3m a day in mid-February, according to the investment bank JP Morgan, in anticipation of a US-led attack. A further 18m barrels are stored on Kharg as a backup, the bank added."
Kharg Island, a five-mile-long coral island in the Persian Gulf, serves as Iran's primary oil export terminal, processing 1.3 to 1.6 million barrels daily, with capacity increased to 3 million barrels in anticipation of conflict. The island's strategic importance stems from its proximity to deep waters suitable for large crude tankers, making it irreplaceable for Iran's oil infrastructure. Despite the US striking 5,000 targets in Iran and Israel bombing refineries and depots, Kharg Island has remained untouched. Experts warn that attacking this facility would devastate global energy markets, potentially driving oil prices from current levels near $120 to $150 per barrel, as it would eliminate Iran's entire daily crude exports. The restraint reflects concerns about economic consequences and global energy security.
Read at www.theguardian.com
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