Iran Blocks Hormuz Strait for Weeks, No LNG Ships Allowed to Depart

On April 7, traders involved in related shipping reported that since the outbreak of hostilities weeks ago, Iran has not allowed any liquefied natural gas (LNG) carriers to pass through the Hormuz Strait, a ban that could exacerbate global supply shortages. On Monday, two tankers loaded with Qatari LNG appeared to be preparing to leave the Persian Gulf, but turned back hours later. Traders stated that these two vessels were not granted permission by Iranian officials. This sudden turnaround highlights that since the U.S. and Israel began airstrikes against Iran in late February, the Hormuz Strait has evidently been in a state of blockade. The traffic of vessels through the strait has significantly decreased, although tankers and other ships still occasionally pass through, usually requiring Iranian permission—while about one-fifth of global LNG supply remains cut off. Sources indicate that currently, fully loaded LNG carriers are scattered throughout the Persian Gulf, either because they have not yet engaged in negotiations with Iran regarding passage or have not received approval. Vessel tracking data shows that more than a dozen fully loaded LNG carriers are in a state of detention in the region. It is also possible that some vessels have evaded monitoring by turning off their transponders or that signal interference has led to inaccurate tracking. However, both traders and vessel tracking data indicate that only one LNG carrier has managed to exit the Hormuz Strait earlier this month—but it was not loaded with cargo.