Everything you want to know about Iran’s Kharg Island!:How this key oil infrastructure is backbone of Iran’s oil economy

Imagine an island that’s not just a piece of land, but the heart of a country’s economy. That’s Kharg Island for Iran. Located in the Persian Gulf, this island is the main spot for Iranian oil exports. It is like a central station for almost all of Iran’s oil going out to the world. On Saturday, 14 March, 2026, US President Donald Trump said on his ‘Truth Social’ account that the US military carried one of the most powerful bombings in the “History of the Middle East”, on this island dubbing it – “Iran’s crown jewel.” Albeit, the Republican president said his country has chosen “NOT to wipe out the Oil Infrastructure on the Island.” But Trump added that he would do so next time if Iran continues to block the Strait of Hormuz. Location of Kharg Island: The ‘Forbidden Island’ is located 25-30 km off the coast of Iran and towards the northwest side of the Strait of Hormuz. Its total area is 20 km and it has its own freshwater supply. It is close to Iran’s coastal Bushehr province. Why is Kharg Island so important? Kharg Island is super important because it’s where most of Iran’s oil is loaded onto ships to be sent to other countries. The island has big storage tanks and loading docks that can handle huge oil tankers. Because of its location and features, Kharg Island has been the backbone of Iran’s oil industry. Kharg Island provides a sea port for the export of up to 90% of Iran’s oil products, as well as supplying storage for up to 30 million (3 crore) barrels of oil, and is therefore strategically important. A hub for oil export Oil from Iran’s oil fields is pumped to Kharg Island through pipelines. Once it arrives, it’s stored in massive tanks. When a ship arrives to pick up the oil, it’s pumped from the tanks onto the ship. This process happens day in and day out, making Kharg Island one of the busiest oil stations in the world. How much oil does Iran export from Kharg Island? Up to 95% of Iran’s oil exports pass through this island. India’s Oil imports from Iran In the past, India used to buy a good amount of oil from Iran. However, due to various international situations and agreements, the amount of oil India imports from Iran has changed over time. Share of Iranian crude in India’s oil basket? Iranian crude oil currently holds a negligible or very low share in India’s oil basket, having dropped to less than 1% following the imposition of U.S. sanctions in 2019-20. Previously, Iran was a major supplier, with its share reaching over 10% in 2017-18 before being slashed by 91.8% due to geopolitical pressures Who else buys Oil from Iran? China buys huge quantities of oil from Iran. China is the dominant buyer of Iranian oil, importing roughly 1.38 million to 1.46 million (13-14 lakh) barrels per day (bpd) as of early 2026 which accounts for more than 80% share of Iranian crude imports, according to data as reported by news agency, Reuters citing analytics firm, Kpler. Reportedly, these shipments are often masked as coming from other nations to provide China with significant discounts ($8–$10 per barrel) to circumvent US sanctions.