Hormuz Blockade Sparks Global Trade Chaos as LNG Supply Crumbles
The Strait of Hormuz blockade has caused significant disruptions to global trade, affecting not only crude oil but also petrochemicals, plastics, fertilizers, and industrial gases.
Nearly six months after the conflict erupted on February 28, 2026, the strait remains closed to normal commercial shipping, with freight rates tripled and more than 1,550 vessels stranded.
The blockade has particularly impacted liquefied natural gas (LNG), which cannot be rerouted through pipelines. Roughly 81 million tonnes of LNG transited the Strait of Hormuz in 2025, representing about 20-21% of total global LNG supply.
The International Energy Agency has warned that a full disruption would strip more than 300 million cubic meters per day from global gas supply, with no way to replace those volumes on short notice. The knock-on effects have been sharp and geographically uneven, with European and Asian natural gas prices rising by +44% and +66%, respectively.