Strait of Hormuz Traffic Surges as Iran Continues to Block Loaded LNG Tankers

Traffic through the Strait of Hormuz has surged to its highest levels in weeks amid ongoing war with Iran, as more countries negotiate safe-passage deals, even while liquefied natural gas (LNG) carriers remain largely blocked, intensifying global energy shortages.^[1][2] No loaded LNG tanker has successfully exited the strait since U.S. and Israeli strikes began on Iran on February 28, trapping roughly 20% of the world's daily LNG supply from the Persian Gulf.^[1][2] This partial reopening for other vessels highlights a selective thaw in Iran's restrictions, but LNG flows stay frozen, according to traders and ship-tracking data compiled by Bloomberg.[Source 1][Source 2]

Two Qatari LNG tankers, the Al Daayen and Rasheeda, loaded in late February just before the conflict escalated, made a bold move on April 6 by heading eastward toward the strait—the first such attempt since the war started.^[1][2][Source 4] The vessels u-turned after approaching the waterway, redirecting toward Pakistan, a major buyer of Qatari LNG, per vessel-tracking data from Bloomberg and MarineTraffic.^[1][2] It's unclear if they will retry passage, as destinations remain fluid, but their shift aligns with reports that Pakistan is exploring options like flagging other ships under its registry after Iran greenlit 20 Pakistani vessels.^[1]

Iran has enforced a strict ban on loaded LNG carriers for weeks, amplifying shortages as no such shipments have transited despite rising overall traffic from other agreements.[Source 2] Meanwhile, Qatar has managed limited internal deliveries, like two shipments to Kuwait from storage tanks that bypassed the strait entirely.^[1] An empty tanker passed through over the weekend, signaling that non-LNG traffic is resuming under secured pacts with countries securing "apparent safe-passage agreements," as noted by Bloomberg Economics.[Source 1]

This standoff matters deeply for global energy markets, where the strait handles a fifth of seaborne oil trade and key LNG volumes, exposing economies to spiking prices and supply disruptions.^[3][Source 3] Investors face heightened volatility, with Lombard Odier's Homin Lee outlining scenarios tied to prolonged closures, including broader exposure to elevated oil costs worldwide.[Source 3] Qatar, the top LNG exporter, and buyers in Asia like China and Pakistan are hit hardest, as trapped cargoes idle and alternatives strain supply chains.^[1][2]

What happens next hinges on diplomatic breakthroughs or escalations: successful transits could ease shortages, but repeated blockages risk worsening the LNG crunch during peak demand seasons.^[1][2] Traders watch for more attempts like the Qatari tankers', while Iran's selective permissions suggest leverage plays in the conflict. Global markets brace for prolonged uncertainty, with no loaded LNG exits confirmed as of April 7.[Source 2]^[1]