Hormuz Strait Disruption Hits LNG Harder than Oil Flows

LNG traffic through the Strait of Hormuz has been severely impacted by security risks, with oil tankers continuing to pass through at reduced levels while LNG flows have seen a sharper decline. According to data from the US Energy Information Administration (EIA), total oil flows through the Strait of Hormuz fell from 21.6 million barrels per day in the fourth quarter of 2025 to 4.9 million bpd in the second quarter of 2026, representing a decline of 77%.

LNG flows declined from 10.5 billion cubic feet per day to 0.8 bcf/d over the same period, a fall of 92%. The sharper decline highlights the greater disruption facing LNG shipments through the strategic waterway. Mehdy Touil, LNG lead specialist at Calypso Commodities, explained that significant structural differences between oil and LNG help explain the divergence in shipping activity.

Oil has a larger and more flexible tanker fleet as well as extensive storage capacity, while LNG does not have the same degree of flexibility. Touil noted that LNG carriers are highly specialized vessels designed for cryogenic service, creating an important distinction from an insurance perspective and resulting in lower risk tolerance than in other hydrocarbon trades.