A potential blockade of the Strait of Hormuz would trigger unprecedented turmoil in the global gas market, according to a new report by the International Energy Agency (IEA). The agency warns that such a scenario would create unprecedented uncertainty about future supply flows and price stability.
IEA analysts emphasize that the impact of a Hormuz closure cannot be predicted with precision. The strait handles roughly 20% of the world's liquefied natural gas (LNG) shipments, making it a critical chokepoint for energy trade. Analysts point out that even temporary disruptions could lead to sharp price spikes and rerouting of cargoes via longer, costlier routes.
Market participants are already assessing contingency plans. European buyers are exploring alternative suppliers in Qatar and the United States, while Asian importers are considering increased purchases from Australia and Russia. Shipping companies are reviewing insurance costs and rerouting options, though delays and higher freight rates seem unavoidable.
The IEA report does not specify a timeline but notes that tensions in the Middle East remain high. Regional conflicts and geopolitical maneuvers continue to pose risks to energy infrastructure. The agency calls for enhanced monitoring of supply chains and stockpiles to mitigate potential shortages.
Analysts agree that the situation demands attention. While no immediate shortage is expected, the possibility of a Hormuz closure serves as a reminder of how fragile global energy security remains.
Source: e24.no