Commercial concerns rise for Gulf states and global shipping

The escalating conflict between Israel and Iran raises the prospect of broader regional instability and has turned the spotlight on the key shipping route of the Strait of Hormuz.

All exports of LNG from Qatar, the world’s second largest exporter, and UAE must pass through the strait, with most cargoes heading to India, China, Japan and South Korea. The narrow passage, at the tip of the UAE and Oman, handles around 20% of global LNG trade.

In 2023, Qatar exported about 81 million tonnes of LNG and the UAE exported 4 million tonnes, contributing 21% to global supply, according to Drewry Shipping Consultants.

Any disruption to this key route would create a major supply shock for the global LNG market, and spur demand adjustments in Asia and Europe. In February, it was announced that Iran has begun .