Why in the News
The United States launched airstrikes on military targets on Kharg Island during the ongoing US–Israel conflict with Iran. Although oil infrastructure was not targeted, the attack raises fears of disruption in global oil supply and a potential spike in crude prices.
What is Kharg Island?
- A small 8-km-long coral island in the Persian Gulf.
- Located about 50 km off Iran’s mainland coast.
- Serves as Iran’s primary oil export hub.
Why Kharg Island is Strategically Important
- Iran’s Main Oil Export Terminal: About 90% of Iran’s crude oil exports pass through Kharg Island. Pipelines from major Iranian oil fields terminate here before exports.
- Massive Oil Infrastructure: Key facilities on the island include:
- Falat Iran Oil Company producing around 500,000 barrels per day.
- Kharg Petrochemical Company.
- Large oil storage and LNG shipping facilities.
- Suitable Geography for Large Tankers: Much of Iran’s coastline is too shallow for very large crude carriers (VLCCs). Kharg lies near deep waters, allowing large oil tankers to dock easily.
Oil Trade Through Kharg
- Normally ≈1.5 million barrels of oil per day exported through the island.
- Iran reportedly increased exports to ≈3 million barrels/day before the strike anticipating conflict.
- About 18 million barrels of oil stored there as reserve capacity.
Why the Attack Matters
- Impact on Oil Prices: If Kharg’s oil infrastructure were destroyed, 90% of Iran’s exports could stop. Global crude prices could surge towards $150 per barrel.
- Strategic Signalling: The U.S. targeted military sites but avoided oil infrastructure, possibly to:
- Avoid a major global energy shock.
- Signal restraint while warning Iran against disrupting shipping.
- Risk to Shipping Routes: The U.S. Navy plans to escort oil tankers through the Strait of Hormuz, which carries a large share of global oil trade.
| [2012] To meet its rapidly growing energy demand, some opine that India should pursue research and development on thorium as the future fuel of nuclear energy. In this context, what advantage does thorium hold over uranium? Thorium is far more abundant in nature than uranium. On the basis of per unit mass of mined mineral, thorium can generate more energy compared to natural uranium. Thorium produces less harmful waste compared to uranium. Select the correct answer using the code given below: (a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 |
