The Israeli attack on Iran in the early hours of June 13, 2025, has significantly heightened tensions across LNG markets in Asia. Sources from Platts, a part of S&P Global Commodity Insights, report that shipping companies are issuing safety alerts, while importers and governments are closely monitoring potential impacts and assessing supply risks, reports S&P Global.
Heightened Concerns
Tensions in the Middle East, particularly following an Israeli attack on Iran around June 13, have triggered heightened concerns in Asian LNG markets, leading to a significant jump in spot prices. While no immediate supply disruptions are anticipated, Asian importers are actively exploring alternative options.
Asian LNG Market on Edge: According to Eric Yep, principal analyst, First Take Gas at Commodity Insights, Asian importers are “in conversations with all their suppliers, and other portfolio players and trading houses, to evaluate options on the table in case there is a dash for alternatives.” LNG trading sources in Asia are closely monitoring the evolving situation and expect impacts on spot prices, though they do not foresee immediate supply disruptions.
China’s Growing Reliance on Qatari LNG: A key concern in Asia, especially for China, revolves around potential supply disruptions at the Strait of Hormuz. China’s dependency on Qatari LNG imports has surged since it ceased importing U.S. LNG in February due to tariff escalations. Data from the General Administration of Customs reveals that Qatar has become China’s largest LNG supplier, accounting for 33.4% of its total imports between January and April. This increased reliance makes China particularly vulnerable to any instability affecting the crucial Strait of Hormuz, through which a significant portion of Middle Eastern LNG transits.
Shipping Impact
The recent Israeli attack on Iran has sent immediate ripples through the shipping industry, particularly affecting operations in the Persian Gulf and the broader Middle East. Beyond the immediate price surge in the spot LNG market, shipping companies are reacting with extreme caution.
Safety Alerts and Paused Chartering: Shipping companies are now actively issuing safety alerts and pausing new chartering offers as they closely monitor the rapidly developing situation. A chartering executive noted the high fluidity of events, stating, “We are not making any offers, nor are there any fresh cargoes quoted today.” The primary inquiries being received concern whether oil and gas shipowners will continue to operate in the Persian Gulf given the heightened risks.
Operational Status and Future Outlook: Currently, LNG loadings in the Persian Gulf are reportedly proceeding on schedule. However, the chartering executive warned that this is unlikely to continue next week if Iran retaliates with full force, indicating a strong anticipation of escalation.
Major Operators Taking Precautions: Illustrating the seriousness of the situation, Japan’s Mitsui O.S.K. Lines (MOL), one of the world’s largest ship operators, confirmed to Platts on June 13 that it has issued “safety alerts” for its ships sailing in the Persian Gulf following the Israeli attacks on Iran. This proactive measure by a major player underscores the perceived threat to maritime security in the region.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: S&P Global
