How the Iran War Triggered a Natural Gas Shock

One of the biggest if arguably predictable consequences of the US-Israel war with Iran has been Tehran’s move to block commercial traffic through the Strait of Hormuz. Given the huge amount of oil and gas that transits the narrow waterway, the threat long has been a key reason why direct military confrontation with the Islamic Republic was avoided.

But while tanker traffic could resume if a peace deal is ever struck, the war’s damage to physical infrastructure and any sense of security associated with one product in particular—liquified natural gas—will be longer term. As every day goes by and fallout from the conflict ripples through the global economy, countries are being forced to find alternatives to LNG, potentially reshaping its role as a “bridge fuel” to renewables. Bloomberg Originals explores why the Iran war led to this energy shock, and what it means for future fossil fuel use and the energy transition.