Shafaqna English- Buyers of liquefied natural gas in both Asia and Europe are intending to press Qatar and the United Arab Emirates for lower prices and stronger supply guarantees, as the U.S.-Iran conflict drives up insurance premiums for Persian Gulf LNG cargoes, according to multiple sources including purchasers, traders, and senior industry figures who spoke with Reuters.
The war is causing a dramatic shift in the dynamics of global energy trade, seriously damaging the reputation of Gulf producers as the most reliable suppliers in the world—a perception that had historically granted them significant negotiating authority.
This leverage has now diminished considerably, as the conflict has largely brought oil and gas movement through the Strait of Hormuz to a standstill. The strait, a narrow passage at the entrance to the Persian Gulf, serves as the sole maritime outlet for most Middle Eastern energy exports, and its partial closure has stripped producers of their ability to enforce their preferred contractual terms.