Global LPG Trade Shifts as U.S. Exports Hit 6.3 MMT and Middle East Flows Drop to 1.3 MMT
Updated
Updated · LP Gas magazine · Jun 1
Global LPG Trade Shifts as U.S. Exports Hit 6.3 MMT and Middle East Flows Drop to 1.3 MMT
4 articles · Updated · LP Gas magazine · Jun 1
March trade flows swung sharply as U.S. LPG exports rose to nearly 6.3 million metric tons while Middle Eastern exports fell to about 1.3 million, according to Dorian LPG’s Q1 review.
The U.S./Israel-Iran conflict disrupted Strait of Hormuz transit for much of March, and attacks on regional infrastructure cut oil, gas, LPG and petrochemical production and exports.
U.S. Gulf Coast terminals absorbed much of the rerouted demand, pushing spot terminal fees from about 8.6 cents per gallon in early January to nearly 44 cents by quarter-end.
Price moves diverged: propane weakened relative to WTI crude, falling from 43% to about 35% as U.S. output and inventories grew, while butane strengthened on Asian demand for replacement cargoes.
Major importers were squeezed by the supply shock, with India’s LPG imports dropping from roughly 2.2 million metric tons in January to below 0.5 million in March.
Has the recent crisis permanently shifted global trade, making expensive, resilient supply chains the new normal?
After a failed war, can diplomacy reopen the world's vital energy strait, now controlled by Iran's new authority?
2026 Strait of Hormuz Crisis: How Middle East Conflict Upended Global Oil and LPG Markets
Overview
In early 2026, escalating tensions in the Middle East led the United States and Israel to launch surprise attacks on Iran, resulting in the death of Iran’s Supreme Leader and several top officials. Iran retaliated by targeting US bases and regional allies, causing major disruptions to energy infrastructure. Within days, Iran announced the closure of the Strait of Hormuz, a vital route for global oil and gas shipments. This action triggered a dramatic collapse in regional energy supplies, sent global energy prices soaring, and forced countries worldwide to urgently seek alternative sources and routes, reshaping global energy markets.