Natural gas prices remain elevated as the Strait of Hormuz remains a bottleneck, effectively removing 20% of global LNG supply from the market since the onset of the Iran war.
Natural gas prices are experiencing upward pressure due to the persistent disruption of LNG shipments through the Strait of Hormuz, which previously accounted for 20% of global supply. With major producers like Qatar unable to maintain normal export volumes seven and a half months into the conflict, the global market faces a structural supply deficit that occasional, irregular shipments cannot resolve.
Approximately one-fifth of global liquefied natural gas supplies passed through the chokepoint.
No, the supply has not recovered in any meaningful way seven and a half months after the conflict began.
Global natural gas markets face sustained supply constraints seven months after the Iran conflict choked key transit routes. With one-fifth of daily LNG shipments still stranded, the loss of output from major producers like Qatar continues to exert upward pressure on prices.
The Strait of Hormuz serves as a vital chokepoint for global energy, historically facilitating the transit of one-fifth of the world's daily liquefied natural gas supplies.
The sustained reduction in supply caused by the Iran war has created a structural deficit in the global gas market, supporting a bullish price environment.