What just happened to Iran’s Kharg Island?

President Trump just said the US has carried out the most powerful bombing raids in Middle East history on Kharg island.

This is a major escalation for oil markets. Here is why.

Kharg Island has been called the crown jewel of Iran oil industry. It is a very important small island in the northern Persian Gulf that controls about 90 percent of Iran crude oil exports.

Kharg Island alone handles about 2 percent of global oil supply.

Before this war situation, Iran was exporting as much as 3 million barrels of oil per day from Kharg Island. Trump said the US military has chosen not to destroy the oil infrastructure on the island for now.

However, President Trump also said he may change this decision if Iran does anything to stop the free and safe movement of ships through the Strait of Hormuz, which Iran is clearly doing right now.

In simple words, Trump is showing that the next step could be destroying oil infrastructure on one of the most important oil islands in the world.

It is not a coincidence that this news came just 2 hours after markets closed for the weekend.

Get ready for a very busy and volatile weekend.