The blockaded Strait of Hormuz has forced major Gulf exporters to reroute liquefied natural gas shipments as tanker traffic slumps. At the same time, European gas prices have soared to a multi-year peak, while the United States strategic oil reserves have plummeted to their lowest levels in 44 years.
Global market
Qatar and the UAE have begun transshipping liquefied natural gas (LNG) outside the Strait of Hormuz to mitigate maritime risks, with only four tanker crossings recorded on Tuesday against a ten-day average of 13. This shipping squeeze drove European gas prices above $900 per 1,000 cubic meters (€75.3 per MWh) on the ICE exchange for the first time since December 2022. Facing extreme prices, Pakistan rejected an emergency LNG cargo offered by BP at $27 per MMBtu, risking severe rolling blackouts. Meanwhile, US Energy Secretary Chris Wright stated in Caracas that Venezuela could double its crude output with foreign deals, as the US strategic petroleum reserve hit a 44-year low of 286.6 million barrels.
Russia & CIS
Russian President Vladimir Putin inspected the Arc7 ice-breaking gas carrier Petr Stolypin under construction at the Zvezda shipyard in Bolshoy Kamen for the Arctic LNG 2 project. Meanwhile, Rosatom’s CEO Alexey Likhachev urged a swift restoration of the power grid at the Zaporizhzhia NPP, which has relied solely on backup diesel generators since late August. Additionally, Russian forces struck four energy infrastructure facilities in the Odesa region that powered Ukrainian ports. In the green energy sector, Rosatom’s renewable energy division began designing an assembly plant in the Amur region to manufacture components for 4.5 MW wind turbines.
Armenia
Russian President Vladimir Putin and Iranian President Masoud Pezeshkian held deep discussions in Bishkek on nuclear energy cooperation and the status of the Bushehr NPP. Rosatom’s CEO Alexey Likhachev confirmed that a new team of Russian experts arrived at Bushehr, raising the Russian workforce to 45. While this regional nuclear dialogue unfolds amid a surge in European natural gas prices to over $900, Armenia’s domestic market remains insulated from global volatility. Strategic EAEU treaties with Moscow secure uninterrupted, duty-free imports of Russian gas and petroleum products at long-term fixed rates, shielding consumers from volatile international market price assessments.