Iran War: Trump Strikes Kharg Island as Oil Markets Shudder

Live Updates: Trump Claims ‘Obliteration’ of Iranian Military Hub as Regional War Deepens

The war between the United States, Israel, and Iran entered a perilous new phase on Saturday. Following a massive wave of airstrikes on Iran’s primary oil terminal, President Donald J. Trump declared that the Iranian military has been “totally decimated,” even as Tehran responded with a barrage of missiles targeting U.S. interests and commercial ports across the Persian Gulf.

A ‘Decisive Phase’ at Kharg Island

Late Friday, U.S. and Israeli forces launched what the Pentagon described as a "surgical but massive" strike on Kharg Island, the terminal through which 90 percent of Iran’s crude oil exports flow. While President Trump asserted that the mission “obliterated every military target” on the island, he emphasized that the oil infrastructure itself was intentionally spared—for now.

“We have the power to turn their energy into a pile of ashes,” Mr. Trump wrote in a morning post on Truth Social. “But we are giving them one last chance to stop the harassment of global shipping. If the Strait of Hormuz is not reopened immediately, the next round will not be so kind.”

Despite the President’s optimistic assessment, satellite imagery and local reports suggest the situation is far from settled. At least two tankers were still seen loading oil at the terminal hours after the strikes, and Iranian officials maintained that their export capacity remains unbroken.

Retaliation Spreads to Baghdad and the Emirates

The Iranian response was swift and geographically broad. For the second time since hostilities began on Feb. 28, the U.S. Embassy in Baghdad’s Green Zone was targeted by rocket fire, with smoke seen rising from the compound’s helipad.

Further south, the United Arab Emirates faced a direct challenge to its role as a global trade hub. Iranian military commanders issued an unprecedented warning for civilians to evacuate the ports of Jebel Ali and Fujairah, claiming the U.S. was using these "hideouts" to launch its offensive.

In Fujairah: Debris from an intercepted Iranian drone sparked a fire at an oil storage facility.

In Kuwait: Two drones targeted the Ahmad Al-Jaber Air Base, causing minor injuries to three soldiers.

The ‘Patriotic’ Cost of $100 Oil

As the conflict enters its third week, the global economy is feeling the weight of the shutdown in the Strait of Hormuz. One-fifth of the world’s oil supply is currently trapped, driving crude prices well above $100 a barrel.

Domestically, the political pressure on the White House is mounting. Average gas prices in the U.S. have climbed to $3.60 a gallon—a sharp rise from the $1.85 seen just last month. White House Press Secretary Karoline Leavitt told reporters that these prices are a “temporary, patriotic sacrifice” necessary to ensure long-term energy independence. Meanwhile, the Dow Jones Industrial Average continued its slide, closing down another 739 points as investors braced for a protracted conflict.

A Growing Humanitarian Disaster

The human cost of the campaign has become increasingly difficult to ignore. The United Nations Refugee Agency estimates that 3.2 million people have been internally displaced within Iran.

The tragedy was underscored by a deepening investigation into the Feb. 28 strike on an elementary school in southern Iran. While the White House initially blamed "inaccurate Iranian munitions," a New York Times investigation confirmed that a U.S. Tomahawk missile hit the school due to outdated targeting data. The strike killed 175 people, most of them children, a fact that has fueled anti-war protests and hardened the resolve of the Iranian leadership.

Leadership in the Shadows

The state of Iran’s government remains a mystery. Since the killing of Ayatollah Ali Khamenei on the war’s first day, his son and successor, Mojtaba Khamenei, has not appeared in public. Defense Secretary Pete Hegseth claimed this week that the younger Khamenei is “disfigured and hiding,” though Tehran’s Foreign Ministry insists the new Supreme Leader is healthy and actively directing the defense of the nation.

As the sun sets over the Persian Gulf tonight, the region remains on a knife-edge. With President Trump demanding an "unconditional surrender" and Iran vowing to turn the Gulf into a "graveyard for invaders," the prospect of a diplomatic off-ramp appears more distant than ever.