Strait of Hormuz Disruptions Cripple Global LNG Supply

Geopolitical tensions in the Strait of Hormuz have reduced LNG exports by 95%, with Iran-Gulf Cooperation Council hostilities and shipping incidents severely constraining liquefied natural gas flows to Europe and Asia. Germany, Japan, and South Korea face critical supply shortages as the strait—which typically handles 21% of global seaborne oil trade—remains constrained, driving global energy prices sharply higher and intensifying competition between Iran, Saudi Arabia, and the UAE for control of this strategic chokepoint.