Six months into Hormuz blockade, Qatar and UAE test ways to keep LNG moving

Billy Odell Tucker-Robinson Founder & Host — Banking With Billy Network • Financial Intelligence • Markets • World News • Independent Analysis
Published: 2026-09-08 • Permanent link

Tensions between Qatar and the UAE have escalated as the two Gulf nations test ways to maintain the flow of liquefied natural gas (LNG) despite the ongoing blockade of the Hormuz Strait. In a recent ship-to-ship transfer (STS) operation, a cargo of LNG was successfully transferred from one vessel to another, highlighting the creative solutions being explored by LNG exporters to circumvent the disruption. The operation, which took place in the Strait of Hormuz, was witnessed by multiple vessels and confirmed by industry sources.

Rising LNG prices have significant implications for investors, with the current market volatility expected to have a lasting impact on the global economy. As the world's largest LNG consumers, countries such as China and Japan are particularly vulnerable to supply disruptions, and any further disruptions to the supply chain could have far-reaching consequences for the global economy. The International Energy Agency (IEA) has warned of a potential shortage of LNG in the coming months, further exacerbating the crisis.

The blockade of the Hormuz Strait has its roots in the 2017 Qatar diplomatic crisis, which saw Saudi Arabia, the UAE, and other Gulf nations sever ties with Qatar. Since then, the blockade has had a profound impact on the global LNG market, with Qatar and other Gulf nations struggling to maintain exports. The blockade has also had significant economic implications for Qatar, with the country's economy expected to shrink by over 10% in 2020.

As the situation continues to unfold, industry experts are warning of the potential for further disruptions to the global LNG supply chain. With the upcoming winter months expected to see increased demand for LNG, any further disruptions could have severe consequences for the global economy. The Qatar and UAE governments are expected to continue exploring creative solutions to maintain the flow of LNG, including the use of STS operations and other innovative technologies.