The Offshore Alliance cancelled a planned strike at Inpex Corp.'s Ichthys LNG project in Australia, citing progress in bargaining. Workers had scheduled stoppages for Wednesday and Thursday over pay and conditions. The project, which supplies roughly 2% of global LNG output, had been a looming supply threat amid a strained market.

Global LNG supply has already contracted by about a fifth after Qatar shut its mega-facility following Iranian attacks, while the Strait of Hormuz stayed largely closed. With Ichthys exporting around 9.3 million tons annually to Japan, a disruption could have hit Asian buyers hard. The strike's cancellation removes one more source of supply concern.

Union demands center on pay rises and improved working conditions for offshore and onshore workers. Talks with Inpex have dragged on for over a year without resolution. Inpex was not immediately available for comment, suggesting any agreement could prove fragile if underlying tensions remain unresolved.