US and Israeli attack on Iran locks down natural gas trade

The rising risk of conflict in the Middle East following the US and Israeli attacks on Iran is directly affecting energy markets, one of the most critical areas of global trade. The increase in regional tension has amplified uncertainties regarding the future of natural gas and liquefied natural gas (LNG) supplies.

According to assessments reported by Bloomberg, it is predicted that these developments could lead to one of the largest disruptions in global natural gas markets since the Russian invasion of Ukraine. This situation is causing serious international concern regarding energy supply security.

STRATEGIC SUPPLY LINE AT RISK

The fact that many countries critical to energy production and shipment are located near the conflict zone further raises the risk level. Countries like Qatar, which neighbors Iran, are among the world's largest LNG exporters.

Furthermore, the Strait of Hormuz, which is vital for global energy transport, is also among the regions at risk. Approximately 20 percent of the world's transported liquefied natural gas passes through this narrow waterway. Therefore, any disruption in the region has the potential to directly affect the global energy supply chain.

LNG TANKERS HALT ROUTES

Data obtained from vessel tracking systems reveal that commercial activity in the Strait of Hormuz has decreased significantly. While this route plays a critical role in LNG shipments, particularly to Asia and Europe, it is observed that some tankers have halted their voyages due to security concerns.

According to the data, at least 11 LNG tankers departing from or arriving in Qatar have been identified as having temporarily halted their movements to avoid using the Strait of Hormuz. This situation indicates that a de facto disruption in energy transport has begun.

CONCERNS OVER NEW FLUCTUATIONS IN NATURAL GAS TRADE

In 2022, Russia's invasion of Ukraine caused a major fracture in the global natural gas market. During that process, Russia largely lost its energy ties with Europe, one of its largest export markets, the global supply balance was disrupted, and record levels were seen in energy prices.

It is assessed that the latest developments in the Middle East could similarly create a new fluctuation in international natural gas trade. It is stated that if energy flows in the region are interrupted, the risk of supply shortages and price increases in global markets could return to the agenda.

News Source: 12punto