Strait of Hormuz: the world's LNG choke point
How, if at all, asks Kwok W Wan, would shutting the Strait of Hormuz affect European gas and Asian LNG prices?
Iran's threat to shut the Strait of Hormuz is a reminder to European gas and Asian liquefied natural gas (LNG) buyers of how vulnerable Qatar is to Middle East geopolitics. And while the immediate effect would likely be felt on UK gas prices, the damage to Qatar’s reputation could persuade Asian customers to hold off from signing long-term contracts and turn to upcoming Australian LNG-export projects instead. Iran and the US have been upping the rhetoric over Hormuz during the past two weeks. Iran threatened to shut the crucial waterway after the EU and US announced plans to impose sanctions on the country’s oil exports, which in turn was a response to Iran’s failure to negotiate over its nu
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