Geopolitical conflict reshapes global VLGC trade flows

The escalating conflict in the Middle East fundamentally reshaped global VLGC trade flows and triggered a sharp rise in LPG freight, with US Gulf-origin LPG rapidly replacing Middle Eastern supply as the primary source for Asian buyers.

The escalating military conflict in the Middle East has led to the first-ever substantial blockade of the Strait of Hormuz since late February, fundamentally reshaping global very large gas carrier (VLGC) trade flows and triggering a sharp rise in LPG freight. The crisis, which intensified in February 2026 following renewed