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Iran Shuts Hormuz, Slashes 20% Oil-LNG Supply

4/25/2026

30 5 Full Breakdown

Summary

Story summary

Iran’s war closed the Strait of Hormuz, cutting one-fifth of global oil and LNG supplies.
IEA Executive Director Fatih Birol called the disruption the biggest crisis in history.
Iranian strikes reduced Qatar’s Ras Laffan LNG export capacity by 17%, with repairs possibly taking five years.
The IEA projects a loss of 120 billion cubic metres of LNG by 2030, keeping markets tight through 2026-27.

History

Historical Context

During the October 1973 OAPEC oil embargo, Arab producers cut shipments to the United States and other Israel-supporting nations, slashing Middle-East exports by about 60 % and driving the price of a barrel from $3 to nearly $12. The shock, which lasted until March 1974, set a precedent that today’s Hormuz closure by Iran is feared to trigger comparable global price spikes.

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Story summary

Iran’s war closed the Strait of Hormuz, cutting one-fifth of global oil and LNG supplies.
IEA Executive Director Fatih Birol called the disruption the biggest crisis in history.
Iranian strikes reduced Qatar’s Ras Laffan LNG export capacity by 17%, with repairs possibly taking five years.
The IEA projects a loss of 120 billion cubic metres of LNG by 2030, keeping markets tight through 2026-27.

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