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Iran War Upends LNG Market and Jolts Gas Prices
QatarEnergy halted output at Ras Laffan after a drone strike, risking 20% of global LNG supply and disrupting shipments through the Strait of Hormuz, a key maritime chokepoint.
- On March 2, QatarEnergy suspended LNG output at Ras Laffan after strikes hit infrastructure, removing close to 20% of global LNG supply, according to the source.
- With Europe already tight after a cold winter, the strikes hit markets with limited buffers as escalating hostilities between the US, Iran and threats to Qatar's LNG supply put nearly 20% of global LNG at risk.
- Maritime intelligence shows carriers anchoring or avoiding Hormuz amid rising war-risk premiums, while March 2 market moves saw the TTF jump to €42.9 per MWh.
- Emerging importers face higher costs and potential power shortages as Qatar sends about 85% of its LNG to Asia, with more than a quarter passing through Hormuz, raising risks of fuel switching and market volatility.
- With Iran sealing Hormuz, reports warn oil prices could reach $100-120 per barrel, while options for LNG rerouting are limited by pipeline constraints, raising macro risks.
25 Articles
25 Articles
Iran War Upends LNG Market and Jolts Gas Prices
Just a month ago, Europe was attracting most LNG spot cargoes as solid demand and fast-depleting gas inventories fetched higher prices than in Asia, where demand was lackluster. A month is a long time in today’s geopolitical order and this week the global gas market was jolted into a massive shock that upended supply and demand trends. Qatar’s halt of LNG production and the de facto closure of the Strait of Hormuz roiled Asian and European gas m…
It's looking grim: a massive new crisis looms, and Hungary could be among the biggest losers
Iran has now officially sealed off the Strait of Hormuz, the vital artery through which a hefty chunk of global oil and LNG shipments flow. While this could boost demand for Russian oil and gas, it may mean a new crisis for the economy of nations like Hungary.Continue reading
The fact that the road from Hormuz represents the Achilles heel in the supply of oil and liquefied natural gas was well known.
Hormuz crisis puts one-fifth of global LNG supply at risk
Escalating US-Iran tensions have halted LNG production in Qatar and threatened shipping through the Strait of Hormuz, exposing Europe, Asia and emerging importers to sharp price spikes and renewed energy security risks.
Crude oil could top $100 as Strait of Hormuz closure halts flows
Oil prices could exceed $100 per barrel if tanker traffic through the Strait of Hormuz is not swiftly restored, as the waterway's closure threatens to disrupt 15 per cent of global oil supply and 20 per cent of global LNG supply, consultancy Wood Mackenzie said.
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