Pakistan's LNG Surplus Under Threat as Strait of Hormuz Disruptions Escalate

Rising tensions between the United States, Israel, and Iran are disrupting global energy markets, pushing up oil and liquefied natural gas (LNG) prices. According to a report by the Institute for Energy Economics and Financial Analysis (IEEFA), Iran's closure of the Strait of Hormuz — a critical LNG shipping route — exposes Pakistan, India, and Bangladesh to supply shortages. Qatar halted production and declared force majeure after its Ras Laffan liquefaction facility was struck, amplifying uncertainty across global gas markets. Rising wholesale energy prices could increase Pakistan's landed LNG costs while delaying ongoing pricing negotiations.