Renewed military strikes between the U.S. and Iran on June 1st triggered a surge in global energy markets. The British month-ahead wholesale gas contract rose nearly 6% following the news. This escalation diminishes prospects for a ceasefire and the reopening of the Strait of Hormuz.
The blockade of the Strait of Hormuz currently halts approximately 20% of global oil and LNG shipments. Qatar, the world's largest producer, has suspended LNG exports for several months. Missile strikes on Qatar's main facility may delay full capacity restoration for up to five years.
The IEA, IMF, World Bank, and WTO issued joint warnings regarding rapidly depleting global inventories. These organizations highlight mounting risks to international fuel security and economic resilience.