The Strait of Hormuz and Global LNG: Electronic interference with ship navigation systems & media hype have emerged as a major threat to oil and LNG markets

With four charts

October 26, 2025

Source: Kpler

The Strait of Hormuz is back in the news after Israel attacked Iran and later the US hit three nuclear facilities in Iran. It is a critical chokepoint for global oil and LNG markets. It carries about 20% of global crude trade and serves as the primary conduit for up to 94% of Qatar’s LNG exports, the world’s second-largest LNG exporter after the United States. Qatar is expanding its LNG capacity from 77 to 126 million tonnes per annum by 2027. The UAE exports all its LNG through the Strait. Kuwait, Dubai, and Bahrain import LNG via the Strait. By year-end, Iraq will join them.

With no viable alternative sea routes, disruptions in the Strait would severely impact global LNG availability, particularly for Asia, which receives about 83% of these exports, and Europe, which gets roughly 15%

A ceasefire between Iran and Israel after a 12-day military escalation has highlighted the Strait of Hormuz's geopolitical risks. Potential disruptions in LNG flow could spike global gas and LNG prices.

This article focuses on the following topics:

• Strait’s role in LNG trade.

• Main markets for Hormuz LNG exports.

• The growing importance of the Strait amid LNG expansion in the Arabian Gulf.

The Strait of Hormuz’s Role in the Current LNG Trade