LNG Tanker Heads Toward Hormuz as Deal Raises Hopes of Reopening

A liquefied natural gas tanker that has been trapped in the Persian Gulf for over three months appears to be heading toward the Strait of Hormuz, just as the US and Iran say they have reached a deal to reopen the waterway.

Disha, which is under a long-term charter with an Indian state-owned importer, is north of the United Arab Emirates and is nearing Oman, according to ship-tracking data compiled by Bloomberg shows.

The tanker picked up an LNG shipment from Qatar’s Ras Laffan facility around March 1, according to the data, and has been unable to exit since.

Other movement around the strait — a vital waterway for global oil and gas — appears limited in the early hours of Monday, as shipowners and traders remain cautious given the lack of detail on the deal announced by the US and confirmed by Iran.

Hormuz has been effectively closed since the start of US and Israeli strikes at the end of February. Even a deal that unblocks the corridor in theory and ends two competing blockades will face multiple hurdles in practice, given the leverage provided to Tehran by its grip on the strait.

European natural gas prices fell as much as 5.8% in early Asian trading on Monday. Resuming LNG traffic through Hormuz would help ease a supply crunch that had kept gas prices in Europe and Asia elevated since March. Oil prices also slumped at the open, with Brent down more than 3%.