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The Context
Kharg Island handles nearly 90 percent of Iran’s crude exports—roughly 2.5 million barrels daily pre-sanctions. Seizing it would mark the first forcible takeover of sovereign energy infrastructure by a Western power since Suez in 1956, upending decades of international law governing territorial waters and resource sovereignty.
The Takeaway
CFOs with Middle East exposure should war-game two scenarios: extended crude disruptions pushing Brent past $140, and secondary sanctions targeting any firm facilitating Iranian oil trade. Boards governing companies with LATAM energy ties face heightened geopolitical scrutiny—proximity to Venezuelan or Mexican state oil opens indirect Iran-sanction risk.
Source: The Guardian