Hormuz Crisis Sends LNG Prices Soaring 40%
The Hormuz crisis is causing concerns that it may undermine long-term demand for liquefied natural gas (LNG), according to Financial Times. The crisis has led to a surge in global LNG prices, with some analysts predicting that this could persist even after the conflict resolves.
Global LNG trade has been disrupted due to the ongoing tensions between the US and Iran, which are exacerbated by the closure of the Strait of Hormuz. This strategic waterway connects the Persian Gulf to the Gulf of Oman and is a crucial shipping route for oil and gas exports.
The Hormuz crisis has caused prices of LNG to surge by 40% in just a few weeks, with some analysts warning that this could have lasting effects on demand. 'If prices stay high, it will undermine long-term demand,' said one analyst, who wished to remain anonymous.