Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTJose ChalhoubWed, August 5, 2026 at 9:00 PM GMT+2 4 min readThe Strait of Hormuz, the Middle East's main choke point, is effectively closed as Iranian attacks on vessels continue, and the ripple effect is tearing through global supply chains. While crude oil and natural gas disruptions have grabbed headlines, liquefied petroleum gas (LPG) also finds itself at the center of the crisis. The United States leads the world in LPG exports by a wide margin. However, the Gulf countries remain a critical supply center: Saudi Arabia, the UAE, and Qatar are all major LPG exporters currently cut off by the closure.The traditional LPG supply chain, which cuts across the Middle East, is challenged by rising US exports and mounting geopolitical turmoil. But a key question remains: who can keep LPG flowing while the world's most critical energy bottleneck is under pressure?The strain on the LPG market from the Iran conflict has been visible. Exports from Saudi Arabia, Qatar, the UAE, and even Iran (whose tankers were recently turned back by the US Navy's blockade) have slowed significantly since the war began. Before the war, roughly 54 oil, chemical and LPG tankers passed daily through Hormuz. During the height of the conflict in early March, propane prices from the Texas Gulf Coast rose to almost 10%, reaching new highs as supply tightened due to the strait's closure. By late May, traffic had plummeted to an average of 11 vessels per day, and by mid-June the cost of propane per gallon was up roughly 25% from pre-war prices in February. The conflict has exposed the vulnerability of overreliance on a single choke point while emphasizing the importance of agile private traders who can find alternative routes to keep hungry markets fed and supply chains stable. The lower risk and potentially lower insurance costs associated with US export flows, as opposed to those from the Arab Gulf, have realigned the logistics of LPG trade.The United States climbed to the top as the world's leading LPG producer thanks to the shale revolution of the 2000s, which drove such a drastic increase in propane and butane that domestic demand couldn't absorb it all. In the 2010s, the US flipped from propane importer to exporter, ultimately becoming a powerhouse driving global LPG trade.While a mere four countries supply around 60% of the world's LPG, most of the global population depends on imports: Asia, Europe, most of South America, and several African countries are all net importers with growing demand for cleaner fuel used in cooking, heating, and transportation.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info