Iran's Proxy War Threatens Global LNG Market Amid Strait of Hormuz Disruptions

The ongoing conflict between the United States and Iran has significant implications for the global liquefied natural gas (LNG) market, particularly for Qatar, the world's second-largest LNG exporter.

Since February 2023, Iran has activated its network of proxies across multiple fronts, targeting U.S. military bases in the Gulf, energy infrastructure, and civilian targets.

The Strait of Hormuz, a critical waterway for oil and gas exports, has become a central strategic vulnerability for Gulf energy exporters, with Qatar relying heavily on unimpeded transit via the strait.

A recent U.S.-Iran memorandum of understanding (MOU) to halt military operations effectively collapsed in July 2026, leading to sustained targeted strikes against Iranian military capabilities linked to the disruption of maritime traffic.

Iran has retaliated with attacks on commercial vessels, demonstrating its capacity to disrupt maritime trade and further entrenching a military stalemate.

The conflict is likely to reignite the debate over the future of the United States' role in the Middle East, with some Gulf states reassessing their reliance on U.S. security guarantees.