Brent Crude Surges Above $90 as Hormuz Attack Disrupts Qatari LNG Exports

The Strait of Hormuz has seen another attack on a tanker carrying Qatari liquefied natural gas (LNG), pushing Brent crude prices above $90 per barrel. The GasLog Shanghai, a Bermuda-flagged LNG carrier, lost all propulsion after an unknown projectile tore through its portside engine room in the strait's southern shipping lane. This is the second attack on the same fleet in four days and part of a pattern of coordinated targeting that has been ongoing for months.

The GasLog Shanghai was carrying a cargo of Qatari LNG bound for Japan, South Korea, China, or Europe when it was attacked on July 31st. Qatar's entire LNG export architecture is built around the Strait of Hormuz, and with no pipeline bypass available, all Qatari LNG must physically exit the strait. The loss of this vessel adds to the cumulative Qatari LNG losses projected by the International Energy Agency (IEA) at approximately 140 billion cubic metres between 2026 and 2030.

The attack on the GasLog Shanghai is part of a larger campaign to demonstrate that passing through the strait under American escort does not make a vessel immune. The US Navy has been coordinating and protecting traffic through the southern route, but Iran has warned it will target vessels that do not use the northern route approved by Tehran.