OIES – Closing the Strait of Hormuz: Impact on the Global Gas Market

This report analyzes the potential impact on the global gas market if the Strait of Hormuz were to be closed.

It focuses particularly on LNG supply disruptions, noting that about 20% of the world’s LNG supply passes through the Strait, mainly from Qatar and the UAE. The report highlights the unlikelihood of closure due to Iran's economic reliance on oil exports, probable military responses, and potential Chinese intervention. It also discusses the destinations of LNG exports, mainly Asian markets and Europe, and the decline in Russia’s pipeline gas exports to Europe, emphasizing the importance of LNG supply routes.