During the first two weeks of the latest war in the Middle East, as US and Israeli strikes rained down on military and energy facilities across Iran, one site went conspicuously untouched.
Despite its tiny size,Kharg Islandis an economic lifeline for Iran, handling roughly 90% of the country's crude exports – meaning any assault on it risks major escalation.
But on Friday the UShit military facilitieson the island. Sites related to the oil trade were not hit, according to US officials and Iranian state media. But Trump has threatened to strike those too, if Iran continues blocking ships from traversing the Strait of Hormuz.
Here's what to know about this crucial spigot in Iran's oil exports operation.
Why is the island so important?
Kharg Island is a coral outcrop around a third of the size of Manhattan just 25 kilometers (15 miles) off Iran's coast, in the Persian Gulf.
Almost every day, millions of barrels of crude oil gush from Iran's major fields – including Ahvaz, Marun and Gachsaran – through pipelines to the island, known among Iranians as the "Forbidden Island" due to tight military controls.
Its long jetties, jutting into waters deep enough to accommodate oil supertankers, make the island a critical site for oil distribution. It processes 90% of Iran's crude exports.
The island has long been key to Iran's economy. ACIA document from 1984said the facilities are "the most vital in Iran's oil system, and their continued operation is essential to Iran's economic well-being." Israeli opposition leader Yair Lapidrecently saidthat destroying the terminal would "cripple Iran's economy and topple the regime."
Iran supplies about 4.5% of global oil, pumping 3.3 million barrels of crude and 1.3 million barrels of condensate and other liquids daily, according to Reuters.
And the island has been loading tankers "non-stop since the war broke out," according to TankerTrackers.com, which uses satellite imagery, shore photography and data to track crude oil shipments.
In the weeks leading up to the US-Israeli strikes on Iran, exports from Kharg were ramped up to near-record levels, US investment bank JP Morgan said in a note reported by Reuters.
Storage capacity on Kharg is estimated at roughly 30 million barrels and, according to global trade analyst Kpler, about 18 million barrels of crude are currently stored there, Reuters reported.
What happened to Kharg?
Trump announced Friday that the US military conducted what he called "one of the most powerful bombing raids in the history of the Middle East," wiping out military assets on Kharg Island.
Video posted to Truth Social by Trump and geolocated by CNN showed US strikes on Kharg's airport facilities and runway.
A US military official told CNN the strikes were "large-scale" but avoided hitting the island's oil infrastructure. Targets included naval mine storage facilities, missile storage bunkers and other military infrastructure, the official added.
Iran said more than 15 explosions were reported on the island but no oil infrastructure was damaged, according to state-affiliated Fars news agency.
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Trump, however, threatened to attack the island's oil assets if Iran continues blocking ships from the Strait of Hormuz.
What impact would strikes have on the war and global oil prices?
Iran has said any attack on its oil and energy infrastructure will lead to retaliatory strikes on facilities in the region owned by US-friendly oil companies, Iranian state media reported, citing Tehran's military command headquarters.
The US strikes have raised the stakes in the war, a retired army official told CNN.
"It's gone simply from a 'take out the military, take out the regime' but now we're trying to take out the economic lifeblood of this country, potentially," former US Army Brig-Gen. Mark Kimmitt said.
Kimmitt said the US is holding the island "hostage" to ensure that Iran allows ships through the Strait of Hormuz, whose closure has already sent crude oil prices soaring.
If that oil infrastructure is targeted, Kimmitt said, "it is clear that Iran is going to attack the rest of the infrastructure in the Middle East."
"And at that point, the prices of oil will just go out of control," he added.
If Kharg's oil facilities were attacked, it could take Iran months, if not more than a year, to rebuild, Muyu Xu, senior crude oil analyst at Kpler told CNN, adding that as the main buyer of Iranian oil, China would likely see the biggest impact.
"They (Iran) are still facing western sanctions, they can't really secure enough funds and also technology and expertise, it would be difficult for them to rebuild," Xu added.
What could happen next?
Iran could escalate even further by making good on its threat to hit oil infrastructure around the region, analysts said. It has already struck oil storage tanks in US allies Oman and Bahrain, and has targeted oil tankers and cargo vessels in the Persian Gulf.
The Islamic Revolutionary Guard Corps has alsothreatened to setthe region's oil and gas infrastructure "on fire" if Iranian energy sites are attacked.
The Kharg strikes came as the US announced it would send a rapid response marine unit of about 2,500 Marines and sailors to the Middle East. Former US Army Brig-Gen. Kimmitt broached the possibility of that force occupying Kharg Island.
It's not yet clear what the MEU will be used for or where exactly it will be deployed. But these units have traditionally been used for missions like large-scale evacuations and amphibious operations that require ship-to-shore movements, including raids and assaults.
Experts have also argued that attempting to capture or attack Kharg Island would require a significant number of ground troops — something the Trump administration has so far been reluctant to call in.
CNN's Kit Maher, Natasha Bertrand, Jeremy Diamond, Alayna Treene, Ross Adkin, and Isaac Yee contributed reporting.
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