Hormuz

The return of war and the battle for Hormuz could once again result in an extended outage. After several weeks of relative calm, volatility has returned to global oil and gas markets.

Supply outages from the Persian Gulf have pushed up prices. But the LNG glut is still expected to arrive later this decade, complicating commercial case for new terminals.

The MOU between the U.S. and Iran could at long last lead to the restoration of oil and gas flows through the Gulf. But there are reasons to think that shipping traffic will take much longer to restore than many think.

Gas executives have begun to voice concerns that the Hormuz crisis has Asian economies turning away from LNG. Costs for new LNG projects are also on the rise.

Accelerated clean energy deployment could displace the equivalent of all Strait of Hormuz flows over the next few years and is the most durable route to economic resilience and energy security, a new report argues.

The stalemate in the Strait of Hormuz is forcing a re-think of LNG-to-power projects in Southeast Asia, particularly in Vietnam and the Philippines, threatening to break the “gas bridge” narrative.

China remains tied to global fuel markets despite its diversification into renewable energy, which poses a significant risk in the context of continuing Hormuz disruption.

Hormuz disruption is driving up freight costs, insurance premiums and spot LNG prices, building pressure on import-dependent power systems in South Asia.

The blocking of the Strait of Hormuz underscores the risks of fossil fuel imports. A new report from Ember makes the case that Asian economies should rapidly shift to renewables.