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US strikes on Kharg Island failed to halt oil production, Iran says

This handout satellite image taken by 2026 Planet Labs PBC shows a view of Iran's Kharg Island about 30 kilometres south of the mainland in the north of the Gulf, Feb. 22, 2026. (Photo by 2026 Planet Labs PBC/AFP)
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This handout satellite image taken by 2026 Planet Labs PBC shows a view of Iran's Kharg Island about 30 kilometres south of the mainland in the north of the Gulf, Feb. 22, 2026. (Photo by 2026 Planet Labs PBC/AFP)
August 31, 2026 11:13 AM GMT+03:00

U.S.-Israeli strikes on Iran’s Kharg Island did not stop oil production or ongoing projects there, the head of Iran’s state-owned oil company said Monday, according to the semi-official Fars news agency.

The official said Kharg Island had been bombed “several times by the U.S.-Israeli enemy” but rejected remarks by U.S. President Donald Trump that the island had been “blown to smithereens.”

“As I speak to you, several contractors are carrying out operations to rebuild and renovate storage tanks,” the official said, calling Trump’s comments “laughable.”

US President Donald Trump clenches his fist after speaking at a campaign rally for US Senator Darline Graham at Myrtle Beach Convention Center in Myrtle Beach, South Carolina on August 21, 2026. (AFP Photo)
US President Donald Trump clenches his fist after speaking at a campaign rally for US Senator Darline Graham at Myrtle Beach Convention Center in Myrtle Beach, South Carolina on August 21, 2026. (AFP Photo)

Oil projects continue despite strikes

“None of the ongoing work on Kharg has stopped,” the official said.

He added that some projects were currently 20% to 30% complete and that work on them was continuing.

Kharg Island remains the site of ongoing reconstruction and renovation work on storage tanks following the strikes, according to the official.

US, Iran exchange strikes

On Sunday, U.S. forces struck two Iranian launchers on Larak Island, marking the first U.S. strikes on Iranian territory since late July, a U.S. official told Axios.

In response, Iran’s Islamic Revolutionary Guard Corps said it targeted U.S. bases in the UAE and Jordan with missiles and drones.

August 31, 2026 11:13 AM GMT+03:00
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