Some oil majors and top trading houses have suspended crude oil, fuel and liquefied natural gas (LNG) shipments via the Strait of Hormuz as the US and Israel attack Iran and Tehran retaliates, four trading sources said on Saturday.
“Our ships will stay put for several days,” one top executive at a major trading desk said.
The tanker association INTERTANKO said the US Navy had warned against navigation in the operations area – the whole of the Gulf, Gulf of Oman, North Arabian Sea, and the Strait of Hormuz – saying it could not guarantee the safety of neutral or merchant shipping.
Eleven LNG tankers in ballast have so far shown signs of slowing down, U-turning or stopping in or around the Strait, said Laura Page, Kpler’s insight manager, LNG and natural gas.
“This number will likely rise over the coming days and could pose risks to Qatari LNG supply to the international market,” she said.
Florence Schmit, energy strategist at Rabobank, said: “If Qatar, which plays a disproportionate role in balancing both Asian and European LNG markets, is unable to export cargoes because of infrastructure damage or shipping impairments, the effect on global gas prices would be dramatic.”