Hormuz Disruption Hits LNG Flows Harder Than Oil Shipments

The Strait of Hormuz disruption has had a significant impact on energy shipping, with oil tanker traffic experiencing a reduced decline compared to LNG shipments. According to data from the US Energy Information Administration (EIA), total oil flows through the Strait of Hormuz dropped from 21.6 million barrels per day in the fourth quarter of 2025 to 4.9 million bpd in the second quarter of 2026, a 77% decline.

LNG flows, however, fell even harder, with a 92% drop from 10.5 billion cubic feet per day (bcf/d) to 0.8 bcf/d over the same period. The Strait of Hormuz is a critical maritime route for LNG exports from Qatar and the UAE.

Mehdy Touil, LNG lead specialist at Calypso Commodities, explained that oil benefits from a larger and more flexible tanker fleet, as well as extensive storage capacity, whereas LNG lacks these same advantages. He noted that LNG carriers are specialized vessels designed for cryogenic transportation, creating important differences from an insurance perspective.

Touil also pointed out that Qatar's LNG export infrastructure is concentrated at Ras Laffan, leaving Qatari LNG without an alternative maritime route. He predicted that replacing disrupted LNG supplies with additional production would be difficult in the short term due to maximum capacity utilization and high operating rates of liquefaction facilities.