Severe LNG Supply Crisis Erupts as Strait of Hormuz Transits Cease

The global LNG market is facing a severe supply crisis following the cessation of tanker transits through the Strait of Hormuz, removing critical Middle Eastern volumes. This supply shock has triggered a demand collapse in China, with April imports projected to hit a six-year low of 3.5 million tons. According to Kpler data, LNG arrivals to China have plummeted by 30% year-on-year, prompting the country to pivot toward re-exporting cargoes to capitalize on surging global prices. Meanwhile, U.S. exporters remain constrained by seasonal maintenance and hurricane disruptions, limiting their ability to bridge the supply gap. The immediate physical closure of this maritime chokepoint has shifted the industry's focus toward urgent energy security and price affordability. Analysts warn that China's retreat from the market reflects the extreme pressure currently facing international energy trade stability.