Strait of Hormuz Closure Triggers Global LNG Supply Shock

The closure of the Strait of Hormuz has stopped the daily transit of roughly 20 % of global liquefied natural gas (LNG) that previously moved through the waterway. Qatar’s LNG shipments have been suspended, cutting off a supply that fuels electricity, heating and industry in Italy, Taiwan, South Korea and other importers, and pushing spot prices sharply upward.

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Global gas markets have already endured two major shocks in five years: Russia’s 2022 curtailment of piped gas to Europe during its invasion of Ukraine, and the war that began on Feb. 28, 2026 involving Iran. The conflict prompted the immediate closure of the strait, halted all LNG carrier movements from the Persian Gulf, and created a two-month pause in shipments.

New York Times

Qatar’s North Field, the world’s largest non-associated gas field, supplies about 10 % of known reserves and operates 14 trains with a 77-million-tonne annual capacity—roughly 20 % of global LNG. U.S. exporters, led by Venture Global’s Plaquemines terminal, Cheniere Energy’s Sabine Pass terminal, and the new Golden Pass terminal, have stepped in to replace the displaced supply. Major importers include Europe, China, Japan, India, Italy, Taiwan and South Korea.

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Spot LNG prices to Europe and Asia have risen to as much as six times U.S. domestic gas prices, while other analyses note a roughly one-third increase. The surge is eroding profit margins for utilities and large manufacturers across Europe and Asia. Europe, which receives 72 % of U.S. LNG exports this year, faces heightened vulnerability, and industrial users in Italy, Taiwan and South Korea confront higher operating costs.

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U.S. LNG exporters have reported record loading of 32.2 million metric tons in the first four months of 2026—a 28 % year-over-year increase—offsetting the 6.9 million tons lost from Qatar. Venture Global’s Plaquemines terminal shipped 6.5 million tons in Q1 (240 % rise) and Cheniere’s Sabine Pass delivered 7.9 million tons (25 % of U.S. exports). Kinder Morgan noted an 8 % rise in natural-gas pipeline volumes and plans further infrastructure expansion.

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One source quantifies the price rise as a one-third increase, while another reports spot prices climbing to six times U.S. natural-gas levels, reflecting divergent measurement approaches.

New York Times

> “All of the L.N.G. that is exported from the U.S., it’s at full capacity.” — Massimo Di Odoardo, Vice President of Gas and LNG Research, Wood Mackenzie

New York Times

Two Qatari LNG trains damaged in the conflict are expected to require three to five years for repair. U.S. firms plan to bring additional LNG capacity online in the coming months and years, while pipeline operators anticipate further expansion to meet the projected long-term shift toward U.S. LNG supplies.

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