Hormuz Strait Disruptions Worsen for LNG, Easing Oil Flows

The Strait of Hormuz has seen a significant decline in energy shipping due to security risks. According to data from the US Energy Information Administration (EIA), total oil flows through the strait fell from 21.6 million barrels per day (bpd) in the fourth quarter of 2025 to 4.9 million bpd in the second quarter of 2026, representing a decline of 77%.

LNG traffic has been hit even harder, with flows declining from 10.5 billion cubic feet per day (bcf/d) to 0.8 bcf/d over the same period, a 92% drop.

The Strait of Hormuz is a crucial maritime outlet for LNG exports from Qatar and the United Arab Emirates (UAE), with around one-fifth of global LNG supply passing through the waterway. Mehdy Touil, LNG lead specialist at Calypso Commodities, attributed the sharper decline in LNG traffic to its more rigid infrastructure compared to oil.