The number of gas carriers idling on both sides of the strait of Hormuz has grown in recent days as operational risks mount with continued geopolitical tensions in the Mideast Gulf.
Kpler shipping data show that seven gas carriers halted today, joining a pool of 23 vessels now idling near UAE and Oman, south of the strait. Of the total, 13 began idling on or after 13 June, when the first reported strikes on Iran occurred.
The pool includes nine very large gas carriers (VLGCs), six medium gas carriers (MGCs) and eight smaller vessels.
At least 11 of the 23 gas carriers have been previously linked to Iranian trade, Kpler data show. Some of the vessels have probably halted as a result of the increased operational risks in the Mideast Gulf, although several were idle before the start of the conflict and may be so for other operational reasons.
A second pool of halted vessels has formed inside the Mideast Gulf, where six VLGCs, all with history of assumed Iran trade, have stopped since the airstrikes began. At least two vessels — Pyra and Gas Endurance — stopped after making U-turns shortly after the conflict escalated, Kpler ship tracking data show.
Assumed Iranian LPG shipments consisted of 47 vessels in the first quarter of 2025, according to Kpler. Current disruptions could significantly impact this flow, especially to China as it has increased its reliance on Mideast Gulf cargoes following trade tensions with the US.
Shipments via the strait of Hormuz — Iranian and from other Mideast Gulf producers — corresponded to 60pc of China's LPG imports so far in the second quarter, Kpler data show, up from 40pc in the previous quarter, as Chinese buyers sought to replace US product.
Despite the vessel buildup, gas carriers continue to transit the strait. Chartering activity in the Mideast Gulf rebounded on 19 June following the release of Saudi Aramco's July loading acceptances. An Indian charterer moved quickly and secured vessels at rates nearing $90/t on a Ras Tanura to Chiba basis, a sharp rise from the $76/t on 13 June before the start of the current conflict.
Volatility is likely to persist as some vessels remain unwilling to operate in the area, which could further support freight rates on limited competition. But this could be offset if high time charter equivalent (TCE) revenues — now significantly elevated due to the risk premium — lure more shipowners back into the region.
