Petraeus: US May Seize Kharg Island Oil Terminals From Iran, Use It to Control Both Iran and China by Controlling the Flow of Oil

Washington, D.C. – March 8, 2026 – In a stark assessment of the escalating conflict between the United States, Israel, and Iran, retired General David Petraeus acknowledged today the possibility of U.S. forces seizing Iran's critical Kharg Island oil terminals. Speaking in a recent interview amid ongoing airstrikes and retaliatory actions, Petraeus highlighted the strategic value of such a move, suggesting it could serve as a lever to pressure not only the Iranian regime but also its key ally, China, by disrupting global oil flows.

Petraeus, the former CIA Director and CENTCOM commander with extensive experience in Middle Eastern operations, described the objectives in Iran as "very achievable" through targeted military actions, including air supremacy efforts that have already degraded Tehran's defenses.

He emphasized that while the U.S. aims to avoid a full-scale occupation, controlling key infrastructure like Kharg Island could accelerate conditions for a political transition in Iran without committing to prolonged ground engagements.

This comes as U.S. officials and analysts increasingly discuss seizing the island as a means to cripple Iran's economy and influence its international backers.What is Kharg Island?Kharg Island, also spelled Kharq Island, is a small, strategically located landmass in the northern Persian Gulf, approximately 25 kilometers (15 miles) off the coast of southwestern Iran. Measuring about 20 square kilometers (8 square miles), the island is primarily known for its role as Iran's principal oil export hub. Developed in the 1950s by American oil companies under the Shah's regime, it features extensive storage facilities with a capacity of around 30 million barrels of crude oil and loading terminals capable of handling up to 7 million barrels per day (bpd) under optimal conditions.

The island processes and exports nearly 90% of Iran's crude oil, making it the lifeline of the country's petroleum industry. Iran's total oil exports typically range from 1.5 to 1.6 million bpd, with fluctuations due to sanctions and global demand. Kharg's infrastructure includes multiple berths for supertankers, pipelines connecting to mainland refineries, and a 77 MW gas power plant to support operations. Geographically, its position allows for efficient shipping through the Strait of Hormuz, a chokepoint for global oil trade.Beyond its economic significance, Kharg Island has military value. It has been targeted in past conflicts, such as during the Iran-Iraq War in the 1980s, when Iraqi forces repeatedly bombed the facilities. Recent reports indicate that the island's power plant may have been damaged in initial U.S.-Israeli strikes, underscoring its vulnerability.

Strategic Implications for Iran and China

Seizing Kharg Island would represent a dramatic escalation in the current conflict, which intensified following the assassination of Iran's Supreme Leader Ayatollah Ali Khamenei on February 28, 2026, and subsequent retaliatory strikes. For Iran, the loss of Kharg would devastate its economy, which relies heavily on oil revenues to fund government operations, military activities, and subsidies. With exports already hampered by international sanctions, a blockade or occupation could reduce Iran's oil income to near zero, potentially accelerating internal unrest and pressuring the regime led by Mojtaba Khamenei toward collapse or negotiation.

Analysts like Michael Rubin of the American Enterprise Institute have called such a seizure a "no-brainer," arguing it would deprive Tehran of funds without necessitating a broader invasion. Retired Lieutenant General Keith Kellogg echoed this, proposing the move as a way to target 89% of Iran's petroleum output. U.S. officials, including those in the Trump administration, have reportedly discussed the option, with reports from Axios indicating internal deliberations on the feasibility.

The ripple effects would extend to China, Iran's largest oil customer. China imports roughly 10-15% of its crude from Iran, amounting to hundreds of thousands of barrels daily, often at discounted rates to bypass sanctions. Disrupting this supply could force Beijing to seek alternatives from sources like Saudi Arabia or Russia, potentially driving up global oil prices and straining China's economy amid its own challenges. Petraeus has noted in discussions that Iran's miscalculations, such as expanding attacks to Gulf states, could broaden coalitions against it, indirectly amplifying pressure on allies like China.

By controlling Kharg, the U.S. could effectively regulate the flow of Iranian oil, using it as a bargaining chip in broader geopolitical negotiations.Risks and Broader ContextWhile Petraeus stressed the achievability of U.S. goals through air and targeted operations, he cautioned against actions leading to quagmires, referencing past experiences in Iraq and Afghanistan. Seizing Kharg would require naval and ground forces, potentially involving special operations to secure the facilities amid Iranian defenses. Reports suggest the island's isolation makes it a feasible target, but it could provoke fierce retaliation, including attempts to mine the Strait of Hormuz or asymmetric attacks.The discussion around Kharg comes amid a fluid war environment, with U.S. forces achieving air supremacy and Iran facing internal divisions.

As Petraeus put it, the focus remains on "hard power" to create conditions for change, but the ultimate outcome hinges on "missile math" – balancing strikes to avoid unnecessary escalation. This potential strategy underscores the intersection of military might and economic warfare in modern conflicts, with Kharg Island standing as a pivotal asset in the high-stakes game unfolding in the Persian Gulf.