When the Iran war closed the Strait of Hormuz earlier this year, about 20% of the world’s liquefied natural gas supply stopped flowing almost overnight. Roughly 90% of the LNG that moves through the strait goes to Asia, so the continent has absorbed the worst of it. Gulf producers have had few good responses. Saudi Arabia cut prices for Asian buyers to soften the blow, but buyers have already begun de-risking and diversifying away from Middle Eastern supplies toward African ones.
