A U.S.-Iran Conflict Could Impact Gas Markets Much More Than Oil
- A quarter of the world’s LNG passes through Strait of Hormuz
- Spike in LNG would likely be twice the rise in oil: Macquarie
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A potential conflict between the U.S. and Iran could be far more disruptive for liquefied natural gas markets than to the world’s crude shipments.
About a quarter of the world’s LNG goes through the Strait of Hormuz, the narrow sea conduit that borders Iran and through which tankers carrying about one-fifth of the world’s oil transit, according to the U.S. Energy Information Administration. Major importers are also less prepared for LNG supply disruptions, because they hold a fraction of the inventories they do for oil.