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Israel warns that Iran will pay a heavy price for its missile attack on populated areas

by Market News Board
1 day ago
in Forex Market, Forex News
The EURUSD and the GBPUSD are lower after softer data. The USDJPY is lower as well.
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Israel this morning that Iran will pay a heavy price for its missile attack on populated areas:

  • Israel may hit energy facilities in response

If Israel attacks Kharg Island, that would be a big thing:

Kharg Island is critically important to Iran’s oil industry—both strategically and economically. Here’s why:

Location & Infrastructure

  • Situated in the Persian Gulf, about 25 km off the Iranian mainland.

  • It serves as Iran’s largest oil export terminal, handling the vast majority of the country’s crude exports.

  • Features include:

    • Massive storage facilities

    • Multiple loading docks for Very Large Crude Carriers (VLCCs)

    • Pipelines connecting to Iran’s southern oil fields

Export Capacity

  • Handles over 90% of Iran’s oil exports under normal conditions.

  • Daily capacity: up to 6 million barrels per day, though actual volumes vary due to sanctions.

  • Crucial for loading and shipping Iranian crude to Asian and global buyers (when allowed).

Strategic & Security Role

  • Kharg Island’s position near the Strait of Hormuz makes it vital for maritime oil logistics.

  • It has been a target during past conflicts (e.g., the Iran–Iraq War) due to its high strategic value.

  • Iran guards the island heavily due to its importance to the national economy and revenue stream.

In Summary

Kharg Island is the backbone of Iran’s oil export system, functioning as a high-capacity, strategically located hub that connects its oil fields to global markets. Any disruption to Kharg Island—through conflict, or sanctions—would severely constrain Iran’s oil export capability and revenue.

Although it is tempting it probably would not happen given the disruption it could have to oil markets.

What the counterattack does open is it gives Israel the opportunity to continue to fight/bomb. We know from Gaza/Hammas that if israal is provoked, they won’t take their foot off the gas pedal. Israel wants to cease all threats of nuclear. I would imagine, that would take negotiations off the table simply because they cannot be trusted.

I may be wrong but when PM Netanyhu has had enough, he has had enough.

What does the US do?

Trump prefers to be the defense supplier vs the aggressor. Part of me thinks he doesn’t mind conflict if it leads to reliance on the US defense industry.

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