LNG Shipments Through Hormuz Rise Despite Ongoing Risks

Liquefied natural gas (LNG) shipments through the Strait of Hormuz are making a comeback, with at least three vessels passing through the critical waterway since late last week. This follows a rebound in traffic that began in September, as producers aim to replenish supplies to customers facing energy shortages. According to ship-tracking data from Bloomberg and Kpler, outbound LNG traffic in September reached its highest level since the Iran conflict escalated in late February. However, current flows are still over 75% below pre-war levels.

The market is closely monitoring LNG shipments through Hormuz for signs of relief from a recent supply crunch. Last month, prices in Europe and Asia surged to their highest levels since late 2022. A sustained recovery in shipments could help ease prices ahead of the Northern Hemisphere winter, a period when heating demand typically spikes.

Despite the increase in traffic, risks to shipping remain high. UK Maritime Trade Operations reported that a tanker was hit by an unknown projectile within Hormuz on October 4, highlighting ongoing concerns for vessels passing through the region.