Strait of Hormuz’s LNG flow role faces uncertainty amid tensions

The U.S. Energy Information Administration (EIA) has reported that the Strait of Hormuz, the sea channel linking the Persian Gulf with the Gulf of Oman and the Arabian Sea, has facilitated the transport of one-fifth of global liquefied natural gas (LNG) trade flows.

As the security situation in the Middle East is heating up after the U.S. launched strikes on Iran’s nuclear facilities, Iran’s threats to close the Strait of Hormuz could throw a wrench into the works of global energy supply.

The Strait is a major shipping route, accounting for the transport of around 20% of global LNG trade in 2024, as reported by the EIA. It is also thought to be critical for oil and petroleum products, accounting for nearly the same amount of oil passage worldwide.

The majority of LNG came from Qatar, which exported about 9.3 billion cubic feet per day (Bcf/d) of LNG through the Strait of Hormuz in 2024, and the United Arab Emirates (UAE) around 0.7 Bcf/d. These accounted for nearly all LNG flows from the Persian Gulf through Hormuz, EIA reports.

According to the report, disruptions to LNG flows through the Bab al-Mandeb Strait, which connects the Red Sea to the Gulf of Aden and Arabian Sea, in 2024, paired with more U.S. LNG exports to Europe, caused LNG exports from Qatar to shift away from Europe to Asia.

The U.S. body estimates that 83% of the LNG that moved through the Strait of Hormuz in 2024 went from Persian Gulf countries to Asian markets. The top destinations for this LNG were China, India, and South Korea, accounting for 52% of all Hormuz LNG flows in 2024. 

Last year, Kuwait and the UAE imported LNG that originated outside of the Persian Gulf, including from the United States and West Africa. Bahrain began operating an LNG import terminal in April 2025 and also received cargoes that transited Hormuz from outside the Persian Gulf, including recent cargoes in April and June that originated from the U.S.

With all this in mind, if Iran does decide to close the Strait of Hormuz, which the Iranian state-owned Press TV claims was backed by Parliament, but the final decision rests with Iran’s Supreme National Security Council, the already elevated oil and gas prices could go further up, and the closure could wreak havoc on global LNG supply.

While the security situation remains precarious, Britannica believes that, while Iran has the capacity to disrupt shipping, it does not have the ability to block the entire width of the strait (55 to 95 kilometers) for a prolonged period of time, especially since Oman controls its south side.

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