The closure of the Strait of Hormuz is rippling through global energy markets, choking off a critical supply of liquefied natural gas (LNG) and exposing a hard limit: Even the world’s top exporter, the United States, cannot step in to plug the gap, The New York Times reported. A two-month halt in LNG shipments from Qatar — one of the world’s largest suppliers — has triggered a sharp surge in prices across Europe and Asia, intensifying pressure on economies heavily reliant on imported gas for power, heating and industry, according to the report. The disruption marks the second major shock to global gas markets in less than five years, after Russia curtailed pipeline supplies to Europe following its war in Ukraine in 2022. While US exports helped cushion that blow, analysts say this crisis is different — and potentially more severe. “All of the LNG exported from the US is already at full capacity,” Massimo Di Odoardo of Wood Mackenzie was quoted as saying. Since the Iran war began in late February, LNG prices in Europe and Asia have surged to as much as six times US domestic gas prices, highlighting a tightening market with limited alternatives. Hormuz choke — LNG flows & shortage Situation worsens At the [...]
