The widening war in Iran and the risk of Iranian drone or missile attacks has shut down almost all tanker traffic through the Strait of Hormuz, the only sea passage out of Persian Gulf and the conduit for 20 per cent of the world economy's oil needs. Tankers travelling through the strait, which is bordered in the north by Iran, carry oil and gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates and Iran.
QatarEnergy has suspended liquefied natural gas (LNG) production following a drone attack, straining the global LNG market. On Monday, Iranian drones struck two sites, according to Qatar's Ministry of Defence: a water tank at a power plant in Mesaieed Industrial City and an energy facility in Ras Laffan belonging to QatarEnergy, the world's largest LNG producer.