Strait of Hormuz Closure Triggers Global LNG Supply Shock
The closure of the Strait of Hormuz from March to April 2026 halted one-fifth of global LNG transit, causing energy prices to surge worldwide.
The Strait of Hormuz closed from March 1 to April 24, 2026, halting the transit of laden liquefied natural gas (LNG) carriers. The closure blocked approximately one-fifth of the world's LNG supply, primarily originating from the Ras Laffan complex in Qatar, triggering a severe global supply shock.
Energy prices surged during the disruption, with the Asian JKM increasing 51% and the European TTF rising 35%. The price spikes forced the Government of India to increase coal plant usage to maintain energy stability. Meanwhile, the governments of Bangladesh and Pakistan ceased LNG purchases entirely because they could not afford the high market-based pricing.
In contrast, the United States experienced a domestic gas glut and a 9% price drop at the Henry Hub. Because export terminals reached 94% utilization, they could not accommodate further production increases, trapping supply within the domestic market. Egypt, which transitioned from an exporter to an importer in 2025, further intensified the crisis by competing for limited available gas supplies.
