US LNG Armada Reroutes to Asia as Hormuz Closure Strands Gulf Gas

An armada of United States liquefied natural gas cargoes has been sailing toward Asia since early March 2026, reshaping global gas trade after a sudden loss of Middle East supply. The trigger came on February 28, 2026, when United States and Israeli airstrikes on Iran pushed the Strait of Hormuz into an effective shutdown. Iran laid mines and warned vessels against passage, and a United States naval blockade of Iranian ports that ran from April 13 to May 29 deepened the disruption. Before the war, close to 20 percent of the world's LNG and roughly a quarter of its seaborne oil moved through the strait.

On March 4, 2026, QatarEnergy declared force majeure on its LNG deliveries after Iranian strikes on its Ras Laffan complex, the largest LNG site in the world. That decision pulled about 20 percent of global LNG supply off the market almost at once. Qatar and the United Arab Emirates, which together hold that share, were both sidelined, and Asian importers that lean heavily on Gulf gas were left searching for replacement cargoes. Roughly 85 percent of Qatar's LNG normally flows to Asia, so the shock landed hardest there.

The United States quickly became the main substitute source. Export terminals on the Gulf Coast and on the Atlantic seaboard, including Cove Point in Maryland, lifted more cargoes bound for Asian buyers. Vessels that had first signaled European destinations were turned around in the Atlantic and sent east instead. In May 2026 alone, eleven Atlantic Basin cargoes were rerouted from Europe to Asia, and almost every one had loaded in the United States. American LNG deliveries to Asia were tracking near 3.45 million tonnes that month, close to double the 1.77 million tonnes shipped a year earlier.

With Hormuz blocked and the Red Sea still unsafe because of renewed Houthi attacks, most of these cargoes took the long route around southern Africa by way of the Cape of Good Hope. That path adds roughly 3,500 to 4,000 nautical miles and about 10 to 14 days to a voyage headed for Northeast Asia. West to east LNG traffic around the Cape climbed to seasonal highs, running well above the same stretch of 2025. The Panama Canal offered little relief, as slot auction prices spiked and waiting times stretched out, pushing operators toward the longer Cape passage despite the extra fuel and time.

The rerouting tightened the global LNG shipping market. Longer voyages tie up more ships for each delivered cargo, which trims effective fleet availability and lifts freight rates. Asian spot prices firmed as summer demand built, with the Northeast Asia benchmark trading near 17 dollars per million British thermal units in late April. Some buyers leaned on fuel switching to ease demand, while Japan and other importers drew on strategic reserves to bridge the gap.

The picture shifted in mid June 2026. The United States and Iran signed a memorandum of understanding on June 17 to end the war, and Washington lifted its naval blockade on June 18. Ships began a careful return, and transits recovered to around 35 per day by early July, still far below the prewar level near 100. LNG movements through the strait, though, stayed close to a standstill even as some crude oil flows resumed.

The recovery did not last. On July 7, 2026, two vessels were hit near Oman, among them the Qatari LNG carrier Al Rekayyat, which caught fire and was evacuated, and the Saudi tanker Wedyan. A third ship was attacked within a day. The United States reimposed sanctions on Iranian oil exports and struck Iranian military sites near the strait. Early on July 12, Iran's Revolutionary Guard declared the Strait of Hormuz closed once more after firing on a ship it accused of using an unauthorized route.

As of July 13, 2026, the strait is again effectively closed to commercial shipping, with only around 34 transits recorded against a normal level near 88 per day. LNG carriers remain among the most exposed vessels, and the stream of United States cargoes toward Asia keeps filling the gap left by absent Gulf supply. The disruption stays active, and the durability of any reopening is still in doubt as sea mines, security risks, and disputes over how to govern the strait persist.