Experts: Crisis in the Strait of Hormuz May Cause Natural Gas Prices to Surge to $1,500
Military actions by the United States and Israel against Iran, as well as the subsequent tension in the Strait of Hormuz, may lead to a collapse of the global energy market. According to a report by the Financial Times, natural gas prices could rise by 25%. Igor Yushkov, an expert from the Russian State Finance University and the State Fund for Energy Security, made these comments during an interview with Sputnik News.
This analyst stated that about 20% of the world's liquefied natural gas (LNG) is transported through the Strait of Hormuz. This mainly refers to Qatar's resources - Qatar is one of the world's largest producers of liquefied natural gas, second only to Australia and the United States.
Yushkov warned, "If its supply disappears from the global market, it will have an immediate impact. Exchange prices could easily break through $1,000, even $1,500, even without such a shortage, Europe has experienced similar price peaks before."
Experts believe prices may reach historical highs, but at the same time emphasize that the final outcome will depend on the duration of the blockade. He reminded that Iran had previously announced the closure of the strait, and shipping had actually stopped. Today, there were reports that navigation may resume, but this is currently not credible.
Original article: toutiao.com/article/1858485569734730/
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