In an interview on CNBC with Dan Murphy, Dr. Carole Nakhle, CEO of Crystol Energy, discussed how rising tensions in the Gulf could affect global LNG and oil markets. She explained that LNG now plays a bigger role than pipeline gas in global trade, which makes major exporters such as Qatar central to energy security. The discussion also highlighted why direct attacks on oil and gas infrastructure would have a stronger market impact than disruption in the Strait of Hormuz alone, especially if the conflict drags on and spreads further across the region.
Key takeaways:
LNG has overtaken pipeline trade in global natural gas markets, which has increased the importance of seaborne supply and made major LNG exporters more critical to global stability.
Qatar is a key player in the gas market, and together with the US and Australia, these three countries account for more than 60 percent of global LNG supply. Any disruption across this group would send shockwaves through global gas markets.
Pressure on LNG supply would eventually feed into electricity prices, and if disruption lasts for several months, the impact would be felt across multiple economic sectors depending on how quickly Qatari LNG can be substituted.
While closure of the Strait of Hormuz would affect energy markets, direct attacks on oil and gas facilities would create a much bigger shock and trigger greater panic across the market.
In the longer term, repeated attacks on infrastructure could increase the risk of direct involvement by regional countries and widen the conflict.
Oil markets still have some protection, as supplies from the US and other non OPEC+ producers remain ample and continue to show growth potential, while IEA strategic reserves add another layer of support against future oil shocks.
Higher oil prices would not necessarily be entirely negative for the US, as they could benefit the shale sector.
The timing of the attacks may also reflect an expectation that oil prices could normalize by the time elections approach.
Related Comments
“Iran War: Asia most at risk in an LNG shortage“, Christof Rühl, Mar 2026
“US and Israel launch major military strikes on oil-rich Iran“, Dr Carole Nakhle, Feb 2026
