A laden LNG carrier was hit by a projectile near the Omani coast as it exited the Strait of Hormuz, heightening unease among shipowners and testing a US-Iran agreement intended to halt attacks in the waterway. The incident underscores the fragility of the security framework in one of the world's most critical energy chokepoints.
Despite the attack, crude oil traffic shows signs of recovery. Two very large crude carriers (VLCCs), each fully loaded with Saudi crude, are heading for the Strait of Hormuz, according to Reuters, citing data from Kpler and LSEG. The vessels — operated by Nippon Yusen KK and Kawasaki Kisen Kaisha — loaded 4 million barrels of crude on March 1 before becoming stuck when Iran shut down traffic through the waterway.
The resumed transit of Saudi crude marks a tentative step toward normalizing flows after the shutdown. However, the LNG carrier strike raises immediate questions about the safety of cross-Hormuz shipping, particularly for liquefied natural gas cargoes that require specialized handling and represent a growing share of Qatari energy exports.
The attack tests the durability of the US-Iran agreement that was meant to guarantee safe passage. If confirmed as deliberate, it could prompt insurers to hike premiums or shippers to avoid the route altogether, tightening global LNG supply and raising prices. Iran's earlier closure of the Strait disrupted roughly 20% of the world's oil transit.
While Saudi crude moves again, the LNG strike introduces a new variable for energy markets already rattled by geopolitical instability. The incident may accelerate efforts by Qatar and other Gulf states to diversify export routes, though no pipeline alternative can fully replace the strategic value of the Strait of Hormuz.