LNG Traffic Halt at Hormuz Sparks Global Gas Crisis Fears

Liquefied natural gas (LNG) carriers have ceased operations on both the Persian Gulf and Oman Sea sides of the Strait of Hormuz, according to real-time vessel tracking data. At least 14 LNG vessels—representing over 35 million tons of annual capacity—were confirmed stopped or rerouted by early morning on March 1, 2026. The strait, a critical maritime corridor for 20% of global oil and 15% of LNG shipments, has now become a focal point of geopolitical risk. The halt is linked to escalating tensions in the region, with regional actors reportedly deploying naval assets near the chokepoint. The disruption threatens to delay deliveries to key importers, including Japan, South Korea, and several EU nations, which rely on stable LNG flows to meet winter and summer peak demand. With Europe already managing tight storage levels and Asia facing seasonal demand spikes, even a week-long delay could push spot LNG prices above $35 per million British thermal units. Crude oil markets reacted sharply, with West Texas Intermediate (CL=F) rising 3.2% to $87.60 per barrel, while Brent crude (UKOIL) climbed 3.8% to $92.10. Natural gas futures (NG=F) surged 12.4% on the ICE exchange, reaching $6.85 per million British thermal units—the highest level since late 2023. The euro weakened against the dollar (EUR/USD down 1.4% to 1.0720), reflecting risk-off sentiment in global markets. Energy traders and utility companies are now reassessing supply contracts, with several European firms initiating emergency procurement bids. Shipping insurers have begun flagging increased premiums for vessels transiting the region, adding cost pressure. The situation remains fluid, with no official confirmation of the cause from regional authorities.