Closure of the Strait of Hormuz cuts off key LPG exporters Saudi Arabia, UAE, and Qatar, tightening global supply.
The Strait of Hormuz, a critical Middle East shipping lane, has effectively closed due to ongoing Iranian attacks on vessels, severing liquefied petroleum gas (LPG) exports from Saudi Arabia, the UAE, and Qatar. These countries rank among the world’s top LPG suppliers, and their absence from global markets is tightening supply chains already strained by broader energy disruptions.
The United States remains the largest LPG exporter, but Gulf producers account for a significant share of global supply. Prior to the blockade, the region shipped approximately 30 million metric tons annually, with Asia and Europe as primary destinations. No immediate timeline has been given for reopening the strait, raising concerns over prolonged shortages.
Markets have yet to fully price in the LPG supply shock, though freight rates for alternative routes are rising. Analysts warn of potential price spikes if the closure persists, particularly in regions reliant on Gulf exports.