Insurance hikes and stalled LNG investment amplify Iran‑era energy squeeze

The International Energy Agency said on April 24 that the Middle East crisis has removed close to 20% of global liquefied natural gas supply from the market since early March. (iea.org) The agency said disrupted shipping through the Strait of Hormuz and damage to liquefaction infrastructure in Qatar have pushed Asian and European gas prices to their highest levels since January 2023. (iea.org) Global LNG production fell 8% year on year, the IEA said, with lower exports from Qatar and the United Arab Emirates only partly offset by higher output elsewhere. April deliveries weakened further as the disruption spread through supply chains. (iea.org) That changed the market’s timetable. The IEA said the expected global LNG expansion wave has been delayed by at least two years, reversing the price easing seen during the 2025-26 heating season. (iea.org) The shipping system has also been repriced. The World Economic Forum, citing the Lloyd’s market and Reuters reporting, said major maritime insurers suspended or repriced war-risk coverage for ships traveling through the Strait of Hormuz and the wider Persian Gulf. (weforum.org) Lloyd’s List reported that Mediterranean Shipping Company, Hapag-Lloyd and CMA CGM suspended Gulf services after the initial strikes, while Ocean Network Express halted new bookings to and from the Middle East Gulf. (lloydslist.com) Lloyd’s List also reported that leading ship insurers including Gard, Skuld, NorthStandard, London P&I Club and American Club issued notices on March 2 to cancel war-risk coverage for Iranian waters, the Gulf and the Strait of Hormuz, before offering new terms at sharply higher rates. (lloydslist.com) Washington moved to fill part of that gap. Lloyd’s List reported in March that the U.S. Development Finance Corporation launched a $20 billion reinsurance facility for Gulf shipping, and gCaptain reported on April 4 that the backstop was doubled to $40 billion. (lloydslist.com) (gcaptain.com) The investment side is moving more slowly than oil prices. Natural Gas Intelligence reported in March that QatarEnergy CEO Saad al-Kaabi told Reuters no work was occurring at the North Field expansion project and that delays could exceed one year after attacks on Ras Laffan. (naturalgasintel.com) The IEA now says that damage in Qatar could cut projected LNG supply growth and keep the market tight through 2026 and 2027. That leaves insurers, shipowners and buyers treating Hormuz risk as a standing cost, not a brief wartime spike. (iea.org)