The US military is systematically dismantling Iran’s energy supply chain, with strikes hitting Kharg Island, the country’s most critical oil export hub, and the Gorgan railway line in northern Iran.

Kharg Island handles approximately 90% of Iran’s crude oil exports.

The military campaign so far

The conflict, which officially began in late February 2026, has escalated in distinct phases under the Trump administration. In March and April, US forces conducted precision strikes against over 90 military targets on Kharg Island, focusing on missile storage facilities, naval mine depots, and air defense systems.

The initial wave of strikes deliberately avoided oil export infrastructure. That restraint didn’t last forever. After Iran breached a ceasefire and attacked commercial vessels navigating the Strait of Hormuz, US operations resumed in July 2026 with a broader mandate. This time, forces struck more than 80 additional targets, expanding beyond Kharg Island to include transportation networks like the Gorgan railway line.

US officials have indicated that while oil infrastructure on Kharg Island hasn’t been directly destroyed yet, future strikes remain on the table if Iran continues to threaten shipping through the Strait of Hormuz.

Oil markets and the price surge

Brent crude has been trading near $110 per barrel. Energy stocks have reacted favorably, riding the wave of supply-side anxiety.

Roughly a fifth of the world’s oil passes through the Strait of Hormuz. Iran’s threats of retaliatory measures against regional energy infrastructure have kept the market on edge.

Bitcoin’s geopolitical volatility play

During this conflict, Bitcoin has demonstrated both sides of its safe haven and risk-asset personality. BTC rebounded above $70K during periods when positive diplomatic talks surfaced. When escalations resumed or oil prices surged, Bitcoin dipped, tracking risk sentiment rather than playing the safe haven card.

Reports suggest Iran has been leveraging Bitcoin mining and stablecoins as tools to navigate international sanctions. The country has been dabbling in crypto mining for years, using its subsidized energy to power mining operations.

What this means for investors

Iran’s increasing use of crypto to circumvent sanctions is worth watching closely. If Tehran scales up its Bitcoin mining operations or increases stablecoin usage for trade settlement, it could draw more regulatory scrutiny from Washington. The US Treasury has historically responded to sanctions evasion with secondary sanctions and enforcement actions, which could have broader implications for crypto exchanges and DeFi protocols that inadvertently process these flows.

Iran has warned of retaliatory strikes against regional energy infrastructure, which could push oil prices even higher and trigger another round of risk-off sentiment across both traditional and digital asset markets.