The Hormuz LNG price impact is expected to intensify as Patrick Pouyanné, CEO of TotalEnergies, warned that liquefied natural gas (LNG) prices could rise sharply if the Strait of Hormuz remains closed.
Speaking at the CERAWeek conference in Houston, he said LNG prices could reach “very high” levels by summer and early autumn.
LNG Price Impact May Spike European Gas Costs
According to Pouyanné, the LNG price impact will be most visible when Europe begins refilling gas storage ahead of winter. This typically happens between summer and September.
If the Strait of Hormuz remains blocked, supply disruptions could push LNG prices significantly higher, increasing energy costs across Europe.
Hormuz LNG Price Impact Threatens Global Supply Chains
The LNG price impact is not limited to energy markets. Pouyanné warned that prolonged disruption could damage global supply chains and broader economic activity.
Higher energy costs would directly affect fertilizer production, transportation, and industrial operations worldwide.
Hormuz LNG Price Impact Linked to Geopolitical Risks
The closure of the Strait of Hormuz by Iran has raised serious concerns in global markets. The waterway is one of the most critical routes for LNG and oil shipments.
As tensions continue, the LNG price impact could extend beyond gas markets and trigger inflationary pressure across multiple sectors.
