The International Energy Agency said that the gas market is facing serious supply constraints. LNG production may experience the biggest annual decline in history due to the Iran-related war cutting off supply and intensifying competition among importing countries. The agency predicts that global supply of liquefied natural gas will drop 3% this year, approaching 20 billion cubic meters. The Strait of Hormuz used to be responsible for about 20% of the world's liquefied natural gas traffic, but now shipping on this channel is blocked. Combined with Iran's attacks on critical infrastructure in the region, exports from Qatar and the United Arab Emirates have been drastically reduced. The Paris-based energy agency representing Western countries and their allies said the forecast presupposes that trade traffic in the Strait of Hormuz will generally continue to be blocked until at least the end of this year. Increased production in other regions mitigated supply shocks to a certain extent. New construction projects in North America and Africa, plus existing liquefied natural gas plants in Africa, Asia, and Russia received more gas, and production outside the Persian Gulf increased by 14% from March to October, making up for about two-thirds of the supply gap in the Gulf region.

The International Energy Agency said that the gas market is facing serious supply constraints. LNG production may experience the biggest annual decline in history due to the Iran-related war cutting off supply and intensifying competition among importing countries. The agency predicts that global supply of liquefied natural gas will drop 3% this year, approaching 20 billion cubic meters. The Strait of Hormuz used to be responsible for about 20% of the world's liquefied natural gas traffic, but now shipping on this channel is blocked. Combined with Iran's attacks on critical infrastructure in the region, exports from Qatar and the United Arab Emirates have been drastically reduced. The Paris-based energy agency representing Western countries and their allies said the forecast presupposes that trade traffic in the Strait of Hormuz will generally continue to be blocked until at least the end of this year. Increased production in other regions mitigated supply shocks to a certain extent. New construction projects in North America and Africa, plus existing liquefied natural gas plants in Africa, Asia, and Russia received more gas, and production outside the Persian Gulf increased by 14% from March to October, making up for about two-thirds of the supply gap in the Gulf region.