Hormuz Disruption Could Spark Global Natural Gas Price Spikes

The global natural gas market is facing significant risks from potential disruptions in the Strait of Hormuz and a possible halt in Qatari LNG exports.

BNY has issued a warning that even a temporary closure or heightened military activity could spike prices and force buyers to scramble for alternative sources.

About 20-25% of global LNG trade, primarily from Qatar, transits the Strait of Hormuz, making it a critical chokepoint for natural gas supplies.

A disruption in Qatari LNG exports would remove a substantial volume of supply from the market, leading to sharp price increases, particularly in Asia and Europe.