TLDR

• U.S. forces struck all military targets on Iran’s Kharg Island, which handles roughly 90% of Iran’s oil exports
• Trump spared the island’s oil terminals but warned they could be hit if Iran keeps blocking the Strait of Hormuz
• Oil prices climbed back above $100 per barrel following the strikes
• Daily tanker transits through the Strait of Hormuz dropped from an average of 84 to fewer than 10 vessels
• 13 U.S. service members have been killed in Operation Epic Fury; five Air Force refueling planes were damaged in Saudi Arabia

President Trump announced on Friday that U.S. forces have destroyed every military installation on Iran’s Kharg Island, the country’s main crude oil export hub.

Trump made the announcement on Truth Social, saying that U.S. Central Command carried out the strikes to remove Iranian defensive capabilities on the island. He wrote that he chose not to destroy the oil infrastructure “for reasons of decency,” but warned that restraint depends on Iran allowing free passage through the Strait of Hormuz.

Iran responded by warning that if its energy assets are hit, it will immediately destroy the energy infrastructure of any country cooperating with the United States.

Thirteen U.S. service members have been killed during the operation, which the military has named Operation Epic Fury.

Five U.S. Air Force refueling planes were struck and damaged on the ground at Prince Sultan air base in Saudi Arabia. Two U.S. officials confirmed the incident. There were no deaths.

The Pentagon is moving a Marine expeditionary unit and additional warships to the Middle East. Trump also said the U.S. Navy will begin escorting oil tankers through the Strait of Hormuz soon.

Oil Prices and Supply Disruptions

Brent crude has been trading near $100 per barrel. Following the Kharg Island strikes, prices moved back above that level.

The Strait of Hormuz has been largely blocked since March 2. Daily tanker transits have fallen from a 2026 average of 84 vessels to fewer than 10, according to data from ACLED.

Kharg Island handles roughly 90% of Iran’s oil exports. Analysts at SEB had warned of a major risk to global supply if the island’s export terminals were hit, saying prices could spike well beyond the current conflict.

The International Energy Agency coordinated a record release of 400 million barrels from strategic stockpiles to ease pressure on energy markets.

Federal Reserve and Inflation Concerns

Analysts at ING say the Federal Reserve may need to keep interest rates higher for longer. The concern is that rising energy costs are pushing inflation away from the Fed’s 2% target.

Fertilizer and plastic feedstock costs have risen due to the Gulf crisis, which feeds into broader consumer prices.

Investors are now watching closely for any retaliatory strikes from Iran’s Revolutionary Guard. The Pentagon’s decision to move a Marine expeditionary unit to the region signals the U.S. is preparing for further escalation.

Oil prices are above $100 per barrel and daily tanker traffic through the Strait of Hormuz stands at fewer than 10 vessels as of the latest available data.

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