LNG Tankers Push Through Hormuz Again as Qatar, UAE Fight Supply Crunch
At least two liquefied natural gas (LNG) carriers transited the Strait of Hormuz this week, and two additional vessels were observed conducting ship-to-ship (STS) transfers offshore Oman, according to tanker-tracking and satellite data compiled by Bloomberg. The movements indicate Gulf exporters, chiefly Qatar and the United Arab Emirates, are stepping up efforts to resume LNG shipments after several months of near-total disruption through the chokepoint.
Why It Matters
Restoration of LNG flows through or around the Strait of Hormuz could ease tight global gas markets that have pushed Asian and European prices to multi-year highs, and is significant as winter demand and European storage refilling increase competition for available cargoes.
Key Facts
- LNG transits reported this week: At least two carriers transited the Strait of Hormuz; two others engaged in STS transfers offshore Oman
- Primary exporters involved: Qatar and the United Arab Emirates
- Duration of mostly halted LNG flows: About six months
- Oil flow recovery estimate: Oil flows via the Strait of Hormuz have recovered to about two-thirds of pre-war levels
- Pre-war LNG exit rate: About three LNG cargoes per day exited the Strait before the war
Satellite imagery and tanker-tracking records reviewed by Bloomberg show a pickup in LNG movements from the Persian Gulf this week, with at least two vessels visibly transiting the Strait of Hormuz and two more carrying out ship-to-ship transfers offshore Oman. The data point to renewed efforts by major Gulf exporters, notably Qatar and the United Arab Emirates, to push cargoes past the chokepoint after months in which LNG shipments were largely stalled.
Unlike crude oil, LNG is harder to reroute via so-called dark transits or shuttle transfers because of the complexities of liquefied gas handling and reloading. Still, analysts compiling the imagery have identified at least three STS LNG transfers offshore Oman over the past month, signaling attempts to work around the Strait's constraints.
Before the conflict-related disruptions, roughly three LNG cargoes a day would normally exit the Strait of Hormuz. Since flows slumped over the past six months, supplies available to Asia and Europe have tightened, contributing to spot gas prices reaching levels not seen since the 2022-2023 energy crisis. Oil flows have been somewhat more resilient, recovering to around two-thirds of their pre-war volume through covert tanker movements.
Market participants and industry executives cited in the reporting warn that the LNG market remains tight ahead of winter as Europe seeks to refill storage and Asian demand competes for scarce spot cargoes. Some analysts say prices could climb by about a third from already elevated levels if the coming winter proves colder than usual.
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