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Why Trump has his sights on Iran's Kharg Island — and what it means for the oil market

Geopolitics & WarEnergy Markets & PricesCommodities & Raw MaterialsSanctions & Export ControlsInfrastructure & Defense

Trump's order to strike Kharg Island has put a strategic Persian Gulf oil hub at the center of an escalating U.S.-Iran confrontation, materially increasing near-term supply risk. Expect heightened oil-price volatility, wider insurance and shipping premia, and potential disruptions to crude exports that could drive risk-off flows across energy and related markets.

Analysis

Trump's order to strike Kharg Island has put a strategic Persian Gulf oil hub at the center of an escalating U.S.-Iran confrontation, materially increasing near-term supply risk. Expect heightened oil-price volatility, wider insurance and shipping premia, and potential disruptions to crude exports that could drive risk-off flows across energy and related markets.

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