US President Donald Trump has warned Iran that the US would target its Kharg Island oil infrastructure if Iranian forces continue blocking critical shipping lanes in the Strait of Hormuz. The Strait, a vital global energy artery, handles around 20% of the world’s oil supply. Trump’s statement comes amid heightened tensions following Iran’s recent seizure of a US drone and its alleged involvement in attacks on oil tankers. The US has deployed additional military assets to the region, signaling a potential escalation in the Gulf conflict. The threat could disrupt global oil markets, with Kharg Island serving as a key hub for Iranian oil exports. A military strike on the island might temporarily halt Iran’s oil shipments, pushing global crude prices higher. Traders should monitor oil futures and the US Dollar, which often inversely correlate with energy prices. Geopolitical risks in the Gulf have historically caused volatility in energy and equity markets. For Gulf investors, the situation poses risks to regional trade and energy security. Saudi Arabia and other Gulf states may face indirect impacts if the Strait’s stability is compromised. Market participants should watch for further US-Iran diplomatic developments, changes in OPEC+ production policies, and potential sanctions on Iranian oil. The US Dollar, Brent Crude, and Gold are likely to be key assets under pressure.

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