Sohar LNG Attempts Hormuz Passage as Market Watches for LNG Flows

A liquefied natural gas tanker called Sohar LNG has entered the Strait of Hormuz, a critical waterway through which about one-fifth of the world's supply of fuel passes. The vessel is attempting to be the first such ship to navigate the strait since the conflict began on February 28.

The Sohar LNG appears not to be carrying a cargo and has changed its destination to the Qalhat LNG export terminal in Oman, according to ship-tracking data. This unusual move has raised eyebrows in the market as it closely watches for LNG flows to resume and ease pressure on global prices.

LNG ships have generally avoided the strait since the conflict began due to Iran's chokehold on access. In some cases, ships have been limited to passing through after paying fees in yuan or cryptocurrencies before being escorted through the strait.