Qatar LNG Tankers Make U Turn at Hormuz as Export Blockade Persists

Two liquefied natural gas tankers operated by Qatar have been compelled to abandon their attempt to navigate through the Strait of Hormuz, marking a continuation of the export paralysis that has gripped the region for more than a month. The vessels, identified as the Al Daayen and the Rasheeda, reversed course on Monday after initially proceeding eastward towards the strategic waterway.

Ship-tracking data compiled by Bloomberg confirmed that both tankers executed U-turns at approximately 06:50 UTC on Monday morning, retreating from the eastern entrance of the strait near Oman. The Al Daayen continues to signal China, which represents Qatar’s largest LNG purchasing nation, as its intended destination. However, such indicated ports of call remain provisional given that tankers frequently modify their declared destinations whilst at sea.

Both vessels had loaded their cargoes in late February, immediately prior to the outbreak of hostilities in the region. Since that time, Iran has effectively imposed severe restrictions on maritime traffic through the Strait of Hormuz, permitting passage only to vessels deemed approved or characterised as “non-hostile”.

The impact on commercial shipping has been dramatic. Average daily vessel transits through the waterway have collapsed to between five and seven ships, representing a 95 per cent reduction from the pre-conflict baseline of approximately 130 to 160 vessels per day. Analysis of recent passage data reveals that nearly three quarters of ships successfully navigating the strait since the blockade commenced are either owned by Iran or operate as part of its shadow fleet.

Amongst non-Iranian vessels granted passage, Chinese-linked ships account for roughly 10 per cent of recent traffic. Selected tankers flagged to India, Pakistan and Greece have also secured transit rights following specific bilateral negotiations with Iranian authorities. Notable recent exceptions include a container vessel operated by French shipping group CMA CGM, which on Thursday became the first Western-linked vessel to traverse the Strait since late February. A Japanese-owned LNG carrier similarly completed the passage on Friday after securing approval from Tehran.

The situation has been exacerbated by significant damage sustained by Qatar’s critical Ras Laffan export facility during Iranian missile and drone strikes in March. The attacks knocked out approximately 17 per cent of the facility’s operational capacity, prompting QatarEnergy to declare force majeure on several long-term LNG supply contracts. Estimates suggest that repairs to certain damaged infrastructure components may require up to five years to complete.

The closure of the Strait of Hormuz has effectively halted around 20 per cent of global daily LNG flows, creating severe supply constraints that have propelled European and Asian gas prices to multi-year peaks. Nearly 50 Qatari LNG tankers are currently sitting idle across various Asian locations, unable to deliver their cargoes to contracted buyers.

The ongoing blockade represents a fundamental disruption to global energy markets, with Qatar having been the world’s largest LNG exporter prior to the crisis. The country’s inability to reliably export its gas production has forced major importing nations to seek alternative supply sources whilst simultaneously driving unprecedented price volatility in both spot and futures markets.

The strategic importance of the Strait of Hormuz, through which approximately one fifth of global oil consumption and significant volumes of LNG typically transit, has been starkly illustrated by the current crisis. The waterway’s vulnerability to geopolitical disruption continues to pose substantial risks to global energy security and economic stability.