Strategic Energy Chokepoints and International Law: The Geopolitical and Legal Significance of Kharg Island and the Strait of Hormuz

I. Introduction

The escalating tensions between the United States and Iran have once again brought global attention to Kharg Island, a strategically critical node in Iran’s oil export infrastructure. Reports that the United States targeted military sites on the island, while deliberately avoiding energy facilities, highlight the delicate balance between military escalation and economic disruption in the Persian Gulf.

Kharg Island is often referred to as the “crown jewel” of Iran’s petroleum system because it serves as the primary export terminal through which around 90% of Iran’s crude oil shipments pass. Any attack on its infrastructure could have severe consequences not only for Iran’s economy but also for global energy markets.

Simultaneously, developments involving safe passage for Indian LPG carriers through the Strait of Hormuz demonstrate the broader geopolitical stakes surrounding the region’s maritime routes. The strait is one of the most important energy transit corridors in the world, transporting a substantial portion of global oil supplies.

These developments raise important questions concerning international law, energy security, maritime navigation rights, and the legal framework governing armed conflict involving critical infrastructure.

II. Geographic and Strategic Importance of Kharg Island

Kharg Island lies approximately 26 kilometres off Iran’s southwestern coast in the Persian Gulf, about 483 kilometres northwest of the Strait of Hormuz. Its geographic location makes it a central hub in Iran’s oil export system.

The island functions as Iran’s primary crude oil export terminal, with infrastructure capable of handling the vast majority of the country’s petroleum shipments. Historically, the island’s development accelerated during the 1960s and 1970s, when Iran expanded its oil production and required deep-water facilities capable of accommodating large supertankers.

Because much of Iran’s coastline is relatively shallow, Kharg Island became the preferred site for large-scale export operations.

III. Energy Infrastructure on Kharg Island

Kharg Island hosts several major components of Iran’s petroleum network.

1. Oil Storage Facilities

The island contains extensive oil storage tanks and terminals used to store crude oil before export. According to energy reports, the terminal’s storage capacity was expanded in May 2025, when two refurbished tanks were added, each capable of storing one million barrels of crude oil.

These storage facilities allow Iran to regulate supply flows and maintain export stability even during periods of market disruption.

2. Pipeline Networks

The island is connected through undersea pipelines to several offshore oil fields, including:

  • Aboozar field

  • Forouzan field

  • Dorood field

Crude oil extracted from these fields is transported through pipeline systems to processing facilities on Kharg Island, where it is prepared for export.

3. Energy Companies Operating on the Island

The island houses several energy installations operated by Iran’s petroleum sector, including:

  • Falat Iran Oil Company, which produces approximately 500,000 barrels of crude oil daily.

  • Kharg Petrochemical Company, which manages petrochemical production and export operations.

These facilities collectively support Iran’s energy production and international oil trade.

IV. Role in Iran’s Economy and Strategic Security

Kharg Island plays an indispensable role in Iran’s economic structure.

Oil exports remain a primary source of government revenue for Iran, funding both state operations and defence expenditures. Energy analysts have repeatedly noted that the island’s infrastructure represents a critical vulnerability within Iran’s petroleum system.

A declassified CIA assessment from 1984 described Kharg Island as “the most vital part of Iran’s petroleum system.”

Because the island processes and exports the majority of Iran’s crude shipments, any disruption could drastically reduce the country’s export capacity.

V. Impact of Potential Attacks on Kharg Island

Energy experts warn that a direct strike on Kharg Island’s oil infrastructure could have several consequences.

1. Disruption of Iranian Oil Exports

Since the island handles approximately 90% of Iran’s crude exports, its destruction or capture could significantly reduce Iran’s ability to sell oil internationally.

This would affect the country’s fiscal stability and economic resilience.

2. Global Oil Market Volatility

International financial institutions have warned that attacks on the island could cause sharp increases in global oil prices.

Oil supply disruptions in the Persian Gulf historically lead to rapid price fluctuations because the region accounts for a large share of global energy production.

3. Regional Escalation

Analysts have suggested that Iran could retaliate by targeting energy infrastructure belonging to countries cooperating with the United States in the region.

This could escalate conflict beyond bilateral hostilities.

VI. Strategic Importance of the Strait of Hormuz

Closely connected to the Kharg Island situation is the importance of the Strait of Hormuz, one of the world’s most critical maritime chokepoints.

Nearly one-fifth of global oil consumption passes through this narrow waterway.

For India in particular, the strait is extremely important because approximately half of India’s oil imports travel through it.

Recent reports indicated that Iran permitted two Indian-flagged LPG carriers to pass through the strait, ensuring continued supply of cooking gas to India.

VII. Diplomatic Engagement Between India and Iran

The safe passage of Indian vessels followed diplomatic discussions between Narendra Modi and Masoud Pezeshkian.

During the conversation, the Indian Prime Minister emphasised:

  • The safety of Indian citizens in the region

  • The importance of uninterrupted energy supply chains

India’s External Affairs Minister Subrahmanyam Jaishankar also held discussions with Iran’s Foreign Minister Seyed Abbas Araghchi to ensure maritime safety.

Iran’s ambassador to India assured that Indian vessels would receive safe passage through the Strait of Hormuz.

VIII. Legal Framework Under International Law

Several legal principles govern the situation involving energy infrastructure and maritime transit.

1. United Nations Charter

The Charter of the United Nations establishes rules governing the use of force in international relations.

Article 2(4) prohibits states from using force against the territorial integrity of another state unless justified by self-defence under Article 51 or authorised by the United Nations Security Council.

Military strikes on infrastructure within another country’s territory therefore raise significant questions under international law.

2. Law of Armed Conflict

Under international humanitarian law, attacks during armed conflict must distinguish between military objectives and civilian infrastructure.

Energy facilities used for civilian purposes may receive protection unless they provide direct military advantage.

This principle is reflected in the Geneva Conventions and their Additional Protocols.

3. United Nations Convention on the Law of the Sea

Navigation rights in the Strait of Hormuz are governed by the United Nations Convention on the Law of the Sea.

Under UNCLOS:

  • Ships enjoy transit passage rights through international straits used for navigation.

  • Coastal states must not impede lawful transit.

These provisions ensure that global trade routes remain open even during geopolitical tensions.

IX. Broader Geopolitical Implications

The developments surrounding Kharg Island illustrate how energy infrastructure has become a central element of geopolitical conflict.

Modern conflicts increasingly involve economic targets rather than purely military objectives. Energy facilities, pipelines, and shipping routes often become strategic pressure points.

For countries dependent on imported energy, including India, stability in the Persian Gulf remains vital.

X. Conclusion

Kharg Island represents far more than a geographic location in the Persian Gulf. It is the backbone of Iran’s oil export system and a critical node in global energy supply chains.

Any disruption to its infrastructure could trigger significant economic consequences, affecting not only Iran but also international energy markets.

Similarly, developments involving the Strait of Hormuz underscore the continuing importance of maritime law and diplomatic engagement in safeguarding global trade routes.

As geopolitical tensions intensify, the intersection of energy security, international law, and strategic infrastructure will remain central to the evolving dynamics of global conflict.

Location: Pune, Maharashtra, India

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