Europe Faces LNG Shortage as Global Fight Brews Over Hormuz Supplies

A global fight for liquefied natural gas (LNG) is threatening Europe's strategy of delaying winter purchases until the Strait of Hormuz reopens. The Strait, a conduit for a fifth of LNG supply, has been shut since February due to conflict in the Middle East.

European governments and energy companies had delayed rebuilding stockpiles, hoping diplomacy would prevail and flows through the strait would resume. However, nearly five months later, that wager is looking risky as gas prices near their highest since the conflict began.

Asian buyers have been snapping up available LNG shipments to replace lost Qatari supply, effectively pulling cargoes away from Europe. A key question is whether governments will intervene to support purchases if Hormuz remains shut, potentially fueling a bidding war with other regions in the months ahead.