More than 150 oil and LNG tankers have altered course or remained stationary as of Saturday, March 14, 2026, after Iran declared the Strait of Hormuz closed to shipping, threatening to attack any vessel attempting passage. The declaration, made by Ebrahim Jabari, a senior advisor to the commander-in-chief of Iran’s Revolutionary Guard Corps (IRGC), prompted an immediate disruption to global energy markets and raised concerns about potential supply shortages, particularly in Asia.
Qatar Energy and other major oil and gas producers swiftly declared force majeure, halting production in response to the heightened risk. LNG benchmarks surged 39% in a single session, according to market analysts, and governments across Asia are reportedly preparing for potential energy rationing by ordering staff to work from home. The move follows a period of escalating tensions in the region, triggered by a joint U.S.-Israeli bombing campaign that resulted in the death of Iranian Supreme Leader Ayatollah Ali Khamenei and other senior officials.
The Strait of Hormuz, a narrow waterway connecting the Persian Gulf to the Gulf of Oman and the Arabian Sea, is a critical chokepoint for global energy supplies. The U.S. Energy Information Administration estimated that in 2024, over 80% of crude oil and liquefied natural gas (LNG) transiting the strait was destined for Asian markets. China, India, Japan, and South Korea collectively accounted for nearly 70% of all crude oil flows through the strait. Saudi Arabia and the United Arab Emirates possess limited bypass pipeline capacity, capable of transporting approximately 2.6 million barrels of crude oil per day – a fraction of the 20 million barrels currently reliant on the Hormuz passage. LNG shipments face an even more acute challenge, with no viable alternative route available if the strait remains closed.
The crisis has prompted renewed discussion about diversifying energy supply routes, with a growing focus on Canada’s emerging Pacific energy infrastructure. The LNG Canada project in Kitimat, British Columbia, began shipping its first cargo in June 2025, marking Canada’s entry into the LNG export market. The expanded Trans Mountain pipeline, with a capacity of 890,000 barrels per day, is also facilitating increased crude oil exports to Asia, particularly China.
These Canadian routes offer Asian buyers a potentially faster, cheaper, and more geopolitically secure alternative to the traditional Hormuz-Malacca route, bypassing potential chokepoints in the South China Sea. Shipping LNG from Kitimat to Northeast Asian terminals takes approximately 10 to 11 days, compared to up to 24 days from the U.S. Gulf Coast via the Panama Canal, and at a lower delivered cost, according to energy research firm RBN Energy.
The Alaska LNG project, backed by the Trump administration and with letters of intent from Japanese and South Korean companies, remains in development. However, the project lacks binding long-term contracts and faces estimated costs exceeding $70 billion, with first exports not anticipated before 2031. LNG Canada, with its Phase 1 already operational and Phase 2 poised for a final investment decision by late 2026 or early 2027, offers a more immediate solution.
Ksi Lisims LNG, also located near Prince Rupert, British Columbia, has already received all necessary regulatory approvals. If both LNG Canada Phase 2 and Ksi Lisims LNG proceed as planned, Canada’s total Pacific LNG export capacity could exceed 40 million tonnes per annum by the early 2030s. Ottawa is actively encouraging Asian participation in these projects as part of a broader strategy to diversify energy exports away from its traditional reliance on the United States.
As of Saturday, Iranian state media continues to broadcast Jabari’s warning, stating, “The strait is closed. If anyone tries to pass, the heroes of the Revolutionary Guard and the regular navy will set those ships ablaze.” No diplomatic initiatives to de-escalate the situation have been publicly announced.
