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The Strait of Hormuz and global LNG supply
How the Middle East conflict is impacting natural gas markets worldwide
An International Energy Agency Newsletter
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Welcome back to Energy Snapshot, the International Energy Agency’s monthly newsletter focused on charts and data. In today’s edition, we look at how the Middle East conflict is affecting global LNG markets.
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The impacts of the Middle East conflict on oil markets https://www.iea.org/reports/oil-market-report-march-2026 have been in focus over the past week…
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Supporting countries in the unfolding energy crisis
…oil and gas prices, with particularly sharp spikes in jet fuel and diesel markets. To help address these unprecedented disruptions, IEA Member countries unanimously agreed https://www.iea.org/news/iea-member-countries-to-carry-out-largest-ever-oil-stock-release-amid-market-disruptions-from-middle-east-conflict last month to the largest ever release of emergency oil stocks.
As the situation evolves, Dr Birol is in close contact with government leaders. He recently met with Prime Minister Anthony Albanese https://x.com/fbirol/status/2035990329891946686?s=20 of Australia in Canberra to discuss the significant energy market challenges https…
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How the global landscape for energy investment is changing
…2026 https://www.iea.org/news/impacts-of-middle-east-conflict-set-to-reshape-energy-investment-plans-as-disruptions-put-focus-on-security report shows.
Energy security is moving higher up the global agenda as a result of two major energy crises this decade. The latest shock, triggered by the war in Middle East, is encouraging investment in a range of projects that diversify suppliers or routes to market, including ways to reduce reliance on the Strait of Hormuz.
It is also reinforcing interest among fuel-importing countries in energy sources available domestically – including renewables, nuclear power, efficiency improvements and…
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A deepening crisis in oil markets and beyond
…more than 14 million barrels per day of oil now shut in – an unprecedented supply shock.
Saudi Arabia and the United Arab Emirates have successfully redirected some exports to terminals loading outside of the strait. Producers outside of the Middle East have also pushed output higher and lifted exports to record levels in response to the crisis while the historic emergency oil stock release by IEA Member countries https://www.iea.org/news/iea-member-countries-to-carry-out-largest-ever-oil-stock-release-amid-market-disruptions-from-middle-east-conflict has provided an additional buffer to markets. Even so…
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How the crisis is reshaping energy investment
…while around $1.2 trillion is set to be invested in oil, natural gas and coal.
Despite higher oil prices, oil investment is expected to decline for a third consecutive year in 2026. The report finds that uncertainty over the duration of the price spike, long project lead times, supply chain constraints and tighter offshore rig markets are limiting near-term spending responses outside the Middle East. At the same time, natural gas investment is projected to rise to the highest level in a decade, supported by a wave of new LNG export projects.
The report finds growing interest among…
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The implications of surging electricity demand
…need for grids and flexibility investments
Global power demand is set to grow by more than 3.5% per year on average over the rest of this decade, with electricity generation from renewables, natural gas and nuclear all expanding to keep pace, according to our new annual report.
Electricity 2026 https://www.iea.org/reports/electricity-2026 provides in-depth analysis of recent trends and policy developments across the sector. It shows that global electricity demand is on course to grow at least 2.5 times as fast as overall energy demand through 2030 as the Age of Electricity takes…
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Growth of IEA Family is milestone for global energy governance
…with some 40 of them at Ministerial level. Top executives from 55 companies, with a combined market capitalisation of $14 trillion, as well as leaders from a range of intergovernmental organisations, also participated.
At the Ministerial, IEA Member governments unanimously agreed to move ahead on building deeper institutional ties with Brazil https://www.iea.org/news/iea-members-agree-to-start-accession-process-with-brazil-at-the-2026-ministerial-in-paris, Colombia https://www.iea.org/news/iea-ministers-invite-colombia-to-become-agency-s-33rd-member-country, India https://www.linkedin.com/posts/fatih-birol_delighted-to-welcome-indias…
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Oil exports through Strait of Hormuz rise
…Strait of Hormuz rise – but significant risks remain
Oil prices have eased substantially in recent weeks on signs that fuel exports through the Strait of Hormuz have started to recover – underpinned by the interim agreement between the United States and Iran in mid-June seeking to reopen the Strait and to lay the foundations for a lasting peace.
A full recovery will nevertheless take time, according to our latest monthly Oil Market Report. https://www.iea.org/reports/oil-market-report-june-2026 Mines must be cleared from shipping lanes while tanker traffic and supply chains need to normalise. Still…
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Contending with the effects of the energy crisis
…work to support governments in responding to the supply disruptions, as well as policy options to shelter consumers from higher prices, strengthen energy security and support energy-intensive industries.
During his visit, Dr Birol also had a bilateral meeting https://x.com/fbirol/status/2047251633793368107?s=20 with Germany's Minister of Economic Affairs and Energy Katherina Reiche to discuss the latest developments in oil and gas markets, including the availability of refined products in Europe and internationally. And he met with https://x.com/fbirol/status/2047259183498789047?s=20 Germany’s Environment, Nature Conservation and Nuclear Safety Minister Carsten Schneider on…
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How the Middle East war has upended oil markets
…However, where stocks cannot fully bridge the gap, demand has taken a hit. Most notably, Asian petrochemical producers have curtailed operating rates as feedstock supply has dried up. Households and businesses using liquefied petroleum gas have also been impacted, while flight cancellations across the Middle East and parts of Asia and Europe have led to a sharp drop in jet fuel consumption.
As a result, the report forecasts that global oil demand will contract by 80,000 barrels per day this year. This contrasts with our earlier forecast, before the outbreak of hostilities, that global demand would grow by 850…