Key facts
- Pakistan purchased its most expensive LNG cargo in years.
- The high price is attributed to the blockade of the Strait of Hormuz.
- About 20% of global LNG supply is stuck behind the waterway.
Pakistan has reportedly purchased its most expensive liquefied natural gas (LNG) cargo in years, a situation exacerbated by the ongoing conflict in the Middle East. The Strait of Hormuz, a critical global energy chokepoint, has been blockaded, leading to significant disruptions in energy supply chains. Approximately one-fifth of the world's total LNG supply remains stranded behind this blockade, impacting global trade and driving up prices for nations like Pakistan that rely on these imports. The involvement of Iran and the US in the blockade highlights the geopolitical complexities affecting energy markets.