Kharg Island, a small coral outcrop in the Persian Gulf, serves as the economic backbone of Iran, processing 90 percent of the nation’s oil exports. The island, steeped in history and heavily guarded by the Islamic Revolutionary Guard Corps, balances its role as a vital energy hub with a diverse archaeological landscape.
The Petroleum Nerve Centre
Located 55km (34 miles) northwest of the Bushehr port and 15 nautical miles (approximately 28km) from the Iranian mainland, Kharg Island handles roughly 950 million barrels of crude oil annually. Its deep surrounding waters allow colossal supertankers to safely dock and load crude primarily destined for Asian markets, with China as the leading importer.
The island’s facilities are described by the Iranian Ministry of Petroleum as the “vital nerve centre” for the nation’s petroleum sector. Crude oil is received from the Aboozar, Forouzan, and Dorood offshore fields and transported via a network of subsea pipelines to onshore processing facilities before storage and shipment.
Despite years of international sanctions, Iran has continued to expand the island’s infrastructure. In May 2025, Tehran added two million barrels to the terminal’s storage capacity by rehabilitating tanks 25 and 27, each capable of holding one million barrels. The terminals have a maximum loading capacity of seven million barrels per day, though current exports average around 1.6 million barrels daily.
Empires and Exiles
The island’s strategic location has made it a valuable prize throughout history, long before the discovery of oil. While some connect the name “Kharg” to the ancient city of Charax Spasinou, archaeological records indicate they are unrelated.
Throughout the centuries, the island’s name has appeared in various forms – Kharg, Khark, Kharaj, and Kharej – and its freshwater springs and location made it a key maritime crossroads for exporting agricultural goods and minerals.
The Portuguese initially seized control of Kharg, followed by Dutch ambitions in 1752 when Baron Kniphausen secured a trading agreement. The Dutch East India Company built a fort, but it was successfully attacked and the Dutch forces expelled in January 1766 by Mir Muhanna, the governor of Bandar Rig.
In the 20th century, Reza Shah Pahlavi transformed the island into a remote exile for political prisoners before its potential was fully realized. The modern petroleum era began in 1958, with the deep-water terminal officially commissioned and its first major shipment in August 1960. As offshore fields were discovered, Kharg surpassed the Abadan port in importance.
Echoes of a Diverse Past
Archaeological evidence indicates human settlement on the island dates back to the end of the second millennium BC, spanning the Elamite, Achaemenid, and Sassanid eras.
Notable sites include the Mir Mohammad Shrine, built in the late 7th century AH, featuring conical domes constructed from rock and mud, and the Mir Aram Shrine, housing a 12-metre (39ft) stone with Islamic inscriptions and torches believed to date back to the Achaemenid period.
The island’s heritage cemetery showcases a mosaic of faiths, including Zoroastrian burial sites, Christian graves, and Sassanid-era tombs.
Other landmarks include the remains of the 1747 Dutch Fort, the Dutch Garden, the Kharg Orchard, an old railway line, Islamic cemeteries, and an Achaemenid inscription – celebrated as one of the oldest archaeological records explicitly mentioning the “Persian Gulf”.
Kharg Island endured heavy bombardment during the Iran-Iraq war in the 1980s and was subsequently rebuilt. Today, it remains heavily militarized, restricting tourism and inadvertently preserving its ecological character.
As supertankers continue to transport Iranian oil, the ancient graves of Zoroastrians and Christians remain on the coral shores, a reminder of the island’s long and turbulent history.
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