Shell warns of severe LNG supply crunch if Hormuz Strait disrupted

Key Facts

1Shell published its LNG Outlook 2026 warning that disruption of LNG flows through the Strait of Hormuz could lead to a severe supply crunch.

Amid rising geopolitical tensions in the Middle East, Shell warned in its 2026 LNG Outlook that any disruption of gas flows through the Strait of Hormuz could lead to a severe supply crunch. The report stated that continued tensions threaten global supply chains, calling for stable policies and investments to bolster energy security. The outlook emphasizes that the LNG market will remain vulnerable to shocks due to a lack of spare production capacity.

Shell shares closed at $77.54 on June 30, near the session high of $78, reflecting investor attention to the report, per market data. The warning comes amid volatility in global energy markets as companies like TotalEnergies and QatarEnergy ramp up investments in LNG projects to meet growing demand from Asia and Europe.

At the latest close on June 30, Shell shares traded at $77.54, up from a low of $77.04. Going forward, investors are watching for any developments related to the Strait of Hormuz and OPEC+ decisions that could affect energy prices. Any escalation in the region could drive LNG prices higher, strengthening Shell's position as one of the world's largest LNG exporters.