QatarEnergy suspends LNG supplies amid US-Iran war and Strait of Hormuz closure

QatarEnergy has suspended liquefied natural gas (LNG) supplies to several Asian countries, including Bangladesh, and to Italy’s Edison until November and early December, respectively. The disruptions are attributed to the closure of the Strait of Hormuz resulting from the ongoing war between the United States and Iran. Qatar has experienced significant economic losses due to the conflict, with LNG exports dropping by 96 percent by the end of August compared to the previous year.

As Europe seeks to replace Russian gas, the limited supply from the Middle East is expected to increase competition between Asian and European buyers, potentially driving international gas prices higher during the winter months.

Amidst these disruptions, Qatar is acting as a mediator between Washington and Tehran to reach a peaceful resolution. Qatari officials have described the economic strain caused by the war as “unbearable” and are working to reopen the Strait of Hormuz to ensure free navigation. Qatar emphasized that a lasting settlement must include regional security arrangements to prevent further aggression against neighboring countries not involved in the conflict.