Oct 22, 2024, 10:00 AM

Analyst says;

Any confrontation in Persian Gulf to shock natural gas market

Any confrontation in Persian Gulf to shock natural gas market

TEHRAN, Oct. 22 (MNA) – A military confrontation in the Persian Gulf will not only impact the global oil markets but will also have a shock effect on the supply of natural gas to Europe, a senior energy expert says.

Ali Asghar Zargar said on Monday that the Strait of Hormuz in the Persian Gulf has become a major corridor for the supply of liquefied natural gas (LNG) in recent years due to the increased production and exports of LNG by Qatar.

Zargar told the ILNA news agency that a potential blockage of the Strait as a result of a confrontation between Iran and Israel could cripple gas markets in Europe in cold winter months.

The comments come amid speculations that Israel might respond to the retaliatory missile attacks from Iran that took place earlier this month. That could prompt stronger retaliation from Iran or even cause it to attack countries in the region that are deemed complicit in Israeli acts of aggression in recent months against Iran and its allies.

That could create a major confrontation in the Strait of Hormuz through which some 40% of the world's seaborne oil exports or 18% of the total global oil supply passes.

Zargar said that Qatar is currently the largest exporter of LNG in the world as it is responsible for a fifth of the global supply.

“Any disruption to the supply of LNG from this region, especially during the winter when demand for gas increases, could lead to strong shocks in the global energy markets,” he said.

The analyst said, however, that Qatar, along with other major energy producers in the region like Saudi Arabia and the United Arab Emirates, will do their utmost to pressure the US, as Israel’s main ally, to prevent any confrontation in the Persian Gulf.

MNA/PressTV

News ID 223344

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