International Gas Union: Closing the Strait of Hormuz Will Paralyze Global Supply and Double Prices

Khaled Abu Bakr, Vice President of the International Gas Union, said that closing the Strait of Hormuz could paralyze the movement of gas and petroleum products and impact the global economy for months. Tensions in the region will raise stocks.

Abu Bakr added that reliance on natural gas is constantly increasing, especially in South America, Africa, and Asia, stressing that gas exports from Algeria and Qatar have not been affected because they are far from military tensions. According to Al Arabiya,

The President of the International Gas Union confirmed that the price of gas traded is slightly higher, not by much, but by 15 to 20% above its expected price. Trading prices have been affected by the Ukrainian war, tensions, and the beginning of the tariff war between the United States and the world. All of this has created pressure, and we at the International Union see an increase of 15% above the normal price.