LNG Shipments Through Hormuz Continue Rebound Amid Shipping Risks

Shipments of liquefied natural gas (LNG) through the Strait of Hormuz are continuing their rebound, which started in September. Producers in the region are working to restore supplies to customers facing energy shortages. According to ship-tracking data from Bloomberg and Kpler, at least three LNG shipments have exited the strait since late last week. While outbound traffic in September reached its highest level since the Iran conflict began in late February, it remains over 75% below pre-war levels.

The market is closely monitoring LNG shipments through Hormuz for signs of relief from a supply crunch that pushed prices in Europe and Asia to their highest levels since late 2022 last month. A sustained recovery could help ease prices just before the Northern Hemisphere winter, when demand for heating typically surges.

The increase in traffic comes despite ongoing risks to shipping in the region. UK Maritime Trade Operations reported a tanker being hit by an unknown projectile within Hormuz on October 4, highlighting the continued dangers in the area.