U.S. President Donald Trump announced on Friday that American forces "destroyed" all military targets on Iran's Khark Island, the main hub for the country's crude oil exports, during one of the largest air bombardments in Middle Eastern history. Military facilities were the primary targets of the strike. However, Trump warned that he is ready to strike critical oil infrastructure in Iran if Tehran continues to block the Strait of Hormuz.

Escalation occurs against the backdrop of Brent crude oil continuing to trade near the $100 per barrel mark, fueled by a 90% collapse in daily tanker transit through the world's most crucial energy hub.

In a statement published on Truth Social, Trump noted that U.S. Central Command (CENTCOM) conducted a raid to neutralize Iranian defensive capabilities on the island through which about 90% of the Islamic Republic's oil exports pass. "Out of considerations of decency, I decided NOT to destroy the oil infrastructure on the island," Trump wrote, clarifying that such restraint depends on the "free and safe passage" of commercial vessels.

Analysts at SEB, a leading Northern European financial services group, had previously warned of a "large, very large risk" to global supplies in the event of damage to Khark's export terminals, predicting a price spike that could extend far beyond the immediate horizon of the current conflict.

The strike on the island of Khark adds a new level of volatility to a market already shaken by the actual closure of the Hormuz Strait since March 2. According to ACLED data, daily transit has fallen to less than 10 vessels compared to an average of 84 vessels in 2026. The supply shortage prompted the International Energy Agency (IEA) to coordinate a record release of 400 million barrels from strategic reserves to combat "inflation fueled by energy prices."

ING analysts suggest that the Fed may be forced to maintain a tighter policy as the core PCE indicator continues to deviate from the target level of 2%, driven by a sudden increase in fertilizer and raw material prices linked to the crisis in the Persian Gulf.

While the U.S. Navy prepares to provide armed escort for commercial vessels passing through the chokepoint, investors are closely watching for possible retaliatory strikes from Iran's Islamic Revolutionary Guard Corps.

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