US President Donald Trump said on Sunday that Iran’s energy hub of Kharg Island is being severely damaged, but gave no further details.
Attacking Kharg, which handled 90% of Iran’s oil exports before the war, would severely disrupt the Islamic republic’s energy trade and put huge pressure on its economy. Trump made the comment on social media, accompanied by a video clip that was later found to be artificially generated.
A US official said forces attacked two Iranian launchers on Larak Island, more than 600 km distant from Kharg. The small island in the Strait of Hormuz near the strategic port of Bandar Abbas overlooks shipping lanes at the mouth of the Gulf, giving it a key role in tension over Iran, maritime security, and global energy supplies.
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Islamic Revolutionary Guard Corps forces were observed preparing to launch rockets with sea mines into the Strait of Hormuz, according to the source. In retaliation, Iran launched ballistic missiles at Jordan, targeting two US bases. Jordan’s armed forces had intercepted eight missiles that entered its airspace, state television said.
US Treasury Secretary Scott Bessent told reporters on Sunday that new secondary sanctions were likely to be unveiled weekly in the effort to pressure Iran, with an initial focus on banks. “We’re starting with the banks, and we’re telling the banks it’s not okay to have Iranian money and to aid the regime,” Bessent said in an interview.
After imposing penalties on the United Arab Emirates branches of Egypt’s Banque Misr on Friday over alleged financial links to Iran, Bessent said the next step may be cutting off an institution entirely from the dollar-based financial system. They have been stepping up efforts to punish Tehran and its business partners with costly economic sanctions, shifting away from military options.
The situation compares to past events in the region, where economic sanctions have been used to pressure governments into changing their behavior. The effectiveness of these sanctions in achieving their goals is a subject of debate, and it remains to be seen how Iran will respond to the latest measures.
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The number of visible commodity vessels transiting the Strait of Hormuz dropped to five a day over the weekend, shipping data showed. The actual number could be higher as some vessels have switched off automatic identification systems to evade attacks.
It is a critical situation.
As the situation continues to unfold, further developments are likely in the coming days and weeks. The US and its allies will be closely watching Iran’s response to the latest sanctions and military actions. They will also be monitoring the impact on the global energy market and taking steps to mitigate any disruptions to the supply of oil and gas.