El Niño Threatens Global Gas Market as 3-Month Hormuz Closure Lifts Asia Cooling Demand
Updated
Updated · Bloomberg · May 25
El Niño Threatens Global Gas Market as 3-Month Hormuz Closure Lifts Asia Cooling Demand
2 articles · Updated · Bloomberg · May 25
Nearly three months of near-closure in the Strait of Hormuz have left the global gas market on edge, with traders now focused on whether hotter Asian weather will tighten supplies further.
Higher-than-normal summer temperatures across Asia, potentially intensified by El Niño, are expected to lift air-conditioning use and put additional strain on power grids while energy prices remain elevated.
China is the key wildcard because stronger heat-driven consumption there could sharply raise demand from the world's largest liquefied natural gas buyer.
That combination of disrupted flows and weather-led demand risks turning a regional heat wave into a broader global gas squeeze.
With a 'Super El Niño' and record energy prices colliding, is the world on the verge of a widespread food crisis this winter?
With oil projected to hit $150 a barrel, is a global recession now inevitable?
As the global energy crisis forces a return to coal, have the world's climate goals been permanently derailed?
Global Gas Crisis 2026: How the Strait of Hormuz Closure and El Niño Drove LNG Prices to Record Highs and Reshaped Energy Security
Overview
The global energy crisis in 2026 was triggered by two major shocks: the intensifying El Niño weather pattern and the critical closure of the Strait of Hormuz. These events combined to disrupt global gas supply chains, causing energy prices to soar and creating severe challenges for countries worldwide. El Niño led to record-breaking heatwaves in Asia, driving up power demand, while the Strait’s closure cut off vital energy flows. Together, these disruptions created a volatile environment, forcing nations to confront immediate supply shortages and rapidly rising costs, highlighting the vulnerability of the global energy system.