LNG Shipping Takes a Sharper Hit from Strait of Hormuz Security Risks
Security risks in the Strait of Hormuz have led to a significant decline in energy shipping, particularly for liquefied natural gas (LNG). 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, a decline of 77%. LNG flows, on the other hand, declined by 92%, from 10.5 billion cubic feet per day (bcf/d) to 0.8 bcf/d.
The Strait of Hormuz is the sole 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. The Gas Exporting Countries Forum (GECF) estimates that the global LNG market lost more than 300 Qatari LNG cargoes and around 20 UAE cargoes between March and June.
Mehdy Touil, LNG lead specialist at Calypso Commodities, attributed the diverging trends in oil and LNG shipping to significant structural differences between the two. 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.