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Donald Trump is reportedly considering seizing Iran's "Oil Island" to destroy the regime's oil revenues.
11:51, Fri, Mar 13, 2026 Updated: 11:56, Fri, Mar 13, 2026
Trump is reportedly considering seizing Iran’s (Image: Getty)
Donald Trump is said to be considering a dramatic move to seize Iran’s crucial oil export hub, a small island in the Persian Gulf through which around 90% of the country’s crude shipments pass. Officials in Washington are said to have discussed plans that could involve US forces taking control of Kharg Island - a strategic outpost that serves as the backbone of Iran’s oil trade.
The island lies just off Iran’s southern coast and acts as the main terminal for the country’s pipelines, enabling supertankers to load crude destined for global markets. Around 90% of Iranian oil exports - worth roughly $7.7billion (£5.8billion) last year - pass through the facility, making it one of the most valuable economic assets controlled by Tehran. Analysts have said taking control of Kharg could effectively choke Iran’s oil income overnight. However, it could also leave the US highly vulnerable to Iranian counterstrikes.
A main road named ‘Oil Boulevard’ traverses the 4-mile island of Kharg (Image: Getty)
A main road named "Oil Boulevard" traverses the four-mile island, which is said to have a loading capacity of roughly seven million barrels per day. Due to the fact that the island processes the vast majority of crude leaving the country, capturing or disabling it could almost halt Iranian exports and cut off a major source of state revenue.
According to Jarrod Agen, a White House adviser, a seizure would mean the US would "not have to worry" about Iranian attempts to keep the Strait of Hormuz shut because it would get "all of the oil" out of Tehran’s hands. Meanwhile, Michael Rubin, a former Pentagon official, said sending troops to take over Kharg Island was a "no-brainer" as it would reduce Iran’s ability to fund its military.
"What we want to do is to get such massive oil reserves in Iran out of the hands of terrorists", Mr Agen, the executive director of the National Energy Dominance Council, told Fox News.
However, experts have warned that the move would have major global repercussions. JPMorgan analysts have said that targeting Kharg would slash Iran’s oil output but also risk escalating retaliation across the Gulf, including potential attacks on shipping routes, including the Strait of Hormuz, according to Reuters.
Iran exported roughly £5.8bn worth of crude oil and petroleum products in 2025 (Image: Getty)
The island’s deep-water terminals allow large tankers to dock - something much of Iran’s coastline cannot accommodate - which is why the country built its primary export infrastructure there.
Trade data shows Iran exported roughly $7.7billion (£5.8billion) worth of crude oil and petroleum products in 2025 despite heavy sanctions. Most of that trade flows through Kharg Island’s loading terminals before being shipped abroad. According to the latest figures, the largest buyers of Iranian oil last year included the UAE at about $4.41billion (£3.3billion), China with $721million (£571million) and Oman with $463million (£367million), according to TradeInt.
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While officials and analysts have floated the idea of seizing the island, experts have warned that any attempt to capture it could have serious consequences. Kharg lies close to the Iranian mainland and is heavily guarded, making any occupation likely to require a sustained military presence.
There are also fears that such a move could send global oil prices soaring higher and spark retaliation across the Middle East, threatening energy infrastructure and shipping lanes throughout the region.
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