US attack on Kharg Island triggers concerns over global oil supply crisis

A major US military strike on Iran’s principal oil export hub has triggered concerns of broader energy supply disruptions across the Middle East.

According to Bloomberg on Sunday (15 March 2026), the attack occurred as the global oil and gas market was already destabilised following two weeks of armed conflict in the region.

US President Donald Trump announced via Truth Social on Friday that American military forces had bombed military targets on Kharg Island in the Persian Gulf. However, he emphasised that oil infrastructure on the island was not targeted by the strikes.

The Iranian government responded by warning that any attack on its energy infrastructure would be met with retaliatory strikes against US-linked energy facilities in the region.

Tensions escalated further after an intercepted drone attack triggered a fire at a major export terminal at Fujairah Port in the United Arab Emirates on Saturday (14 March 2026). The incident forced a temporary halt to crude oil and refined product loading operations that same day.

Nevertheless, the strikes have increased risks to the global oil market within a conflict that has already constrained production and nearly closed shipping lanes through the Strait of Hormuz.

Crude oil prices have surged more than 40 per cent since the war broke out two weeks ago.

The International Energy Agency has characterised the conflict as creating the largest supply disruption in the history of the global oil market.

Iran is heavily dependent on Kharg Island as its oil export centre. Approximately nine out of every ten barrels of Iranian oil exports are shipped through the island, with the majority of shipments destined for China.

Data from TankerTrackers.com shows that two oil tanker vessels—one with a capacity of approximately 2 million barrels—were anchored at Kharg Island hours after the US strike.