Trump Threatens to Seize Kharg Island; Oil Tops $91

President Donald Trump wrote on Truth Social on Thursday: “The United States will be hitting Iran… VERY HARD TONIGHT. At some point in the not too distant future, we will be taking Kharg Island, and other oil infrastructure points, and assume total control of their Oil and Gas Markets, much like we have with Venezuela.” The post followed days in which U.S. forces resumed strikes on Iran and Tehran stated those attacks had nullified a ceasefire.

The message prompted an immediate market reaction. U.S. crude futures moved from near $90 to about $91.75 per barrel within minutes. Bitcoin fell to roughly $62,680 before recovering to around $62,841, leaving a small daily gain overall. Traders priced a higher geopolitical risk premium into oil and other markets.

Regional authorities took measures after the escalation. The Persian Gulf Strait Authority declared the Strait of Hormuz closed until further notice. U.S. Central Command reported commercial vessels continued to transit the waterway. JPMorgan estimated visible tanker traffic has fallen to about 15% of pre-conflict levels, and some banks and shipping analysts reported reduced tanker movements alongside higher insurance and freight costs.

Kharg Island is the terminal that loads the supertankers carrying roughly 90% of Iran’s crude exports. During the 1980s, Iraq repeatedly bombed Kharg; Iran rerouted exports through islands such as Lavan and Sirri and at times sustained shipments above 1.5 million barrels per day.

Analysts noted the persistence of the current risk premium will depend on whether the threatened strikes occur and on Iran’s military and logistical responses. Tehran has also proposed a Bitcoin toll for tankers transiting the Strait of Hormuz as part of measures to lessen financial pressure.