Strait of Hormuz LNG disruption is putting pressure on global gas markets as supply flows from Qatar and the UAE are severely constrained. The report highlights how Strait of Hormuz LNG disruption is driving price volatility and exposing Asia’s dependence on seaborne LNG trade.
Strait of Hormuz LNG disruption is creating a significant shock to global gas markets, with nearly one-fifth of global LNG supply affected by constrained tanker flows through this critical maritime chokepoint. The report highlights how the shutdown of Qatar’s Ras Laffan facility and reduced transit capacity have tightened supply conditions at a time when global gas markets were already fragile.
Asian markets are particularly exposed, as almost 90% of LNG volumes passing through the Strait are directed to the region. Countries such as China, India, Pakistan and emerging Asian importers rely heavily on these flows, making them vulnerable to sudden supply interruptions and price spikes. In response, LNG prices surged sharply in Asia and Europe, triggering demand-side adjustments including rationing and increased competition for alternative cargoes.
The Strait of Hormuz LNG disruption also underscores structural vulnerabilities in global energy trade, where concentrated supply routes and limited flexibility can amplify geopolitical risks. While additional LNG capacity is expected later this decade, the current crisis highlights the urgent need for diversified supply sources, flexible contracting strategies and resilient shipping routes to ensure long-term stability in global LNG markets.
