90% of Iran’s Oil Exports at Risk: Hormuz Closure Sparks Global Supply Chain Crisis

For global supply chain managers, the simultaneous shutdown of Iran’s primary oil terminal and the world’s most critical maritime chokepoint is a nightmare scenario. Kharg Island’s deep-water terminals handle 90% of Iranian crude exports, and the Strait of Hormuz normally carries 21% of the world’s daily petroleum traffic. With U.S. forces striking tankers and Iran closing the waterway, hundreds of vessels face rerouting, delays, and vastly increased war-risk premiums. The disruption will ripple through supply chains for crude, LNG, and refined products, threatening manufacturing and transport costs worldwide.

The United States’ military conflict with Iran entered a perilous new chapter on June 11, 2026, as President Donald Trump openly threatened to seize Kharg Island, Iran’s primary oil export terminal, while U.S. forces continued airstrikes for a third consecutive night. The threat, broadcast on social media, marks a dramatic escalation beyond the two-month-old ceasefire and a shift toward explicit U.S. control of foreign energy assets, directly comparing the planned seizure to earlier actions in Venezuela. Kharg Island’s deep-water terminals handle roughly 90% of Iran’s crude oil exports, making it the single most critical node in Iran’s petroleum infrastructure. The U.S. Navy had already implemented a blockade that choked off most Iranian oil shipments, and Central Command (CENTCOM) confirmed strikes on three tankers this week attempting to transport Iranian oil, resulting in the first known seafarer deaths—three Indian crew members. In response, Iran’s maritime authority closed the Strait of Hormuz to all traffic, effectively blocking the transit of an estimated 21 million barrels per day of crude and condensate, which represents about 21% of global petroleum consumption.

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Kharg Island’s deep-water terminals handle 90% of Iranian crude exports, and the Strait of Hormuz normally carries 21% of the world’s daily petroleum traffic.

The immediate operational picture is one of rapidly expanding conflict. CENTCOM reported strikes on Iranian surveillance, communication, and air defense systems across southern Iran, while Iran retaliated with attacks on nearby Gulf nations, raising fears that the fighting cannot be contained. The closure of the Strait of Hormuz, the world’s most vital oil chokepoint, has sent shockwaves through energy markets and global supply chains. Even without a ground invasion of Kharg Island—which analysts say would almost certainly require U.S. ground troops—the action has already triggered a logistical nightmare for tanker operators, who face war-risk insurance premium spikes, rerouting around the Arabian Peninsula, and direct military threats. The U.S. military’s public announcement of future operations signals a departure from operational secrecy, adding an unusual psychological dimension to the crisis.

The historical context deepens the significance. Kharg Island is not merely an export terminal; it is the linchpin of Iran’s entire oil industry, with onshore storage, processing facilities, and a long history of being targeted during the Iran-Iraq War. The current campaign echoes the so-called Tanker War of the 1980s, when both nations attacked commercial shipping. This time, however, the explicit goal is to seize physical control of oil infrastructure and “assume total control of their Oil and Gas Markets,” as Trump asserted. The threat comes on top of a blockade that has already starved Iran of oil revenue, potentially crippling its economy. For Iran, the loss of Kharg Island would be an existential economic blow, likely leading to massive retaliation. Iranian Parliament Speaker Mohammad-Bagher Ghalibaf warned that further escalation would “explode energy infrastructure and markets,” a threat that could materialize as attacks on Saudi, Emirati, or Iraqi oil facilities, or as extensive mining of the Strait.