Islam Mo

What just happened to Iran's Kharg Island? President Trump just said the US has carried out the "most powerful bombing raids in Middle East history" on Kharg island. This is a MAJOR escalation for oil markets. Here's why: Kharg Island has been described as the "crown jewel" of Iran's oil industry. It is a vital, tiny island in the northern Persian Gulf that manages ~90% of Iran's crude oil exports. Kharg Island alone handles ~2% of global oil supply. In the lead up to the war, Iran was exporting as much as 3 MILLION barrels of oil per day from Kharg Island. Trump said that the US military has "chosen NOT to wipe out the Oil Infrastructure on the Island" for now. However, President Trump also said he will reconsider this decision should Iran "do anything to interfere with the free and safe passage of Ships through the Strait of Hormuz," which Iran is clearly doing right now. In other words, President Trump appears to be paving the path for the destruction of oil infrastructure on one of the world's most crucial oil ports and islands. It's no coincidence this came just 2 hours after markets closed for the weekend. Buckle up for a busy weekend ahead.