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Qatar Extends LNG Force Majeure Amid Hormuz Closure

Bloomberg Markets •
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Qatar extended force majeure on liquefied natural gas supplies to European and Asian buyers by another month as uncertainty over the full reopening of the Strait of Hormuz clouds prospects for restoring Persian Gulf energy flows. State-owned Qatar Energy this week notified Pakistani buyers that LNG cargo cancellations will continue into October, according to traders familiar with the matter. Force majeure on supplies to Bangladesh has also been extended beyond September, they said.

The Strait of Hormuz remains a critical chokepoint for global energy shipments, and its continued closure disrupts supply chains for major importers in Asia and Europe. Qatar Energy, the world's largest LNG exporter, has been unable to fulfill contractual obligations due to the blockade, triggering force majeure clauses that allow suspension of deliveries without penalty.

Traders indicate the extensions reflect ongoing geopolitical instability in the region, with no clear timeline for the strait's safe reopening. The situation underscores the vulnerability of global gas markets to maritime disruptions in the Persian Gulf.