Tensions Tighten: Oil and LNG Shipments Halt in Hormuz

Amid escalating tensions between the U.S., Israel, and Iran, major oil and trading companies have suspended shipments through the Strait of Hormuz. The U.S. Navy has warned against navigation in the region, affecting LNG supplies and potentially causing a significant impact on global gas prices.

Amid escalating tensions involving the U.S., Israel, and Iran, significant disruptions have hit the oil and LNG shipment lanes through the vital Strait of Hormuz. Both oil majors and top trading houses have paused their transportation activities in response to the conflict, according to insiders.

The U.S. Navy has issued warnings regarding the navigation in the Gulf, Gulf of Oman, North Arabian Sea, and the Strait of Hormuz, citing inability to guarantee the safety of neutral or merchant vessels. This has led INTERTANKO to signal a halt, with multiple LNG tankers already slowing or reversing course.

Kpler's insight manager, Laura Page, notes increasing delays in LNG tanker movements, endangering Qatari LNG exports and potentially triggering a spike in global gas prices. Florence Schmit of Rabobank stresses the significant ramifications for global energy markets, as Qatar is crucial for balancing Asian and European LNG needs.

(With inputs from agencies.)