Hormuz Crisis Tightens Oil Supplies as US LNG Exports Soar

A recent surge in WTI prices has been attributed to US-Iran strikes, which have tightened supply through the Hormuz Strait. The US Energy Information Administration (EIA) reported that LNG exports averaged 17.4 Bcf/d in the first half of 2026, a 23% increase from last year.

The EIA expects LNG exports to average 17.3 Bcf/d in the second half of 2026 and continue growing in 2027. However, global LNG markets remain tight due to disruptions caused by the Hormuz crisis, which has led to a decrease in Qatari supply and increased competition for spot LNG cargoes.

The US, with its increasing gas production and export capacity, is seen as a key buffer against these supply constraints. The recent data from the EIA showed a draw of about 2.6 million barrels from US inventories, further tightening domestic balance.