Strait of Hormuz Disruptions Drive Global LNG Prices Higher
European and Asian nations are increasing liquefied natural gas imports as Iranian missile strikes and naval interdictions in the Strait of Hormuz tighten global supplies.
Global liquefied natural gas prices have reached their highest levels since late 2022 following prolonged disruptions in the Strait of Hormuz. The region previously provided approximately 20% of the global supply, but flows have tightened after Iran launched a cruise missile strike on a U.S. vessel, injuring eight U.S. Marines. Tensions remain high as American naval forces continue to interdict Iran-linked oil supertankers.
These disruptions have intensified competition for flexible U.S. supplies between Europe and Northeast Asia. The European Union is increasing imports to refill inventories ahead of the Northern Hemisphere winter, with projections indicating the region will absorb about 25% of global LNG supplies in September.
Demand is also rising in Asia. India has increased its imports by 10% because dry weather has reduced hydropower capacity. Market volatility persists as energy companies, including the Indian Oil Corporation and FPT Corporation, scramble to secure cargoes for late October and terminal deliveries.
