Strait of Hormuz Chokepoint Crisis Drove Global LNG Prices to Near-Doubling

The global energy system has been exposed as vulnerable to disruptions in the Persian Gulf due to its reliance on a single maritime chokepoint, the Strait of Hormuz. Approximately one-fifth of all globally traded liquefied natural gas (LNG) moves through this narrow waterway between Iran and Oman.

Qatar's North Field, the world's largest single natural gas reservoir, sits directly in the Persian Gulf, making it difficult to reroute LNG exports. The Strait of Hormuz has been identified as a systemic vulnerability that has gone unexamined until now.

The ongoing Middle East war and LNG supply crisis have disrupted Qatar and UAE export operations, resulting in an estimated 355 million cubic meters per day of combined output disruption. This has triggered a near-term supply contraction of approximately 19-20% globally.