New Delhi, March 31 -- Iran's Kharg Island, home to a terminal through which the country exports most of its oil, has emerged as a focus of the month-old war launched by the United States and Israel.

Strikes on oil infrastructure on Kharg - or a ground invasion - would severely curb Iran's oil exports, a key source of revenue for the Islamic Republic. It would also mark a major escalation that could provoke even heavier retaliatory attacks on Gulf Arab infrastructure and further drive up oil prices. The skyrocketing cost of fuel is already threatening the world economy.

A U.S. occupation of the island would put American troops in a stationary position just 33 kilometers (21 miles) off Iran's coast, well within range of its arsenal of dr...