As of mid-July 2026, renewed military activity around the Strait of Hormuz has reinforced the importance of maritime security for global energy supply chains. Although oil and natural gas exports continue to move, shipping companies are operating in a far more uncertain environment as insurance costs, security requirements and commercial risks continue to rise. LNG shipping is attracting particular attention because the characteristics of liquefied natural gas create operational risks that differ significantly from crude oil transportation. These developments are prompting market participants to look beyond commodity prices and focus more closely on the resilience of global shipping networks.
Tom Beney, Senior Vice President of Ocean Freight at StoneX, has spent decades advising commodity producers, traders and industrial clients on international freight markets and shipping logistics. His experience across global energy transportation provides a practical perspective on how geopolitical events influence commercial shipping decisions long before disruptions appear in official trade data.
Key Themes from the Discussion
LNG carriers face materially higher operational risks than crude tankers if attacked because of the nature of their cargo.
War-risk insurance premiums and security requirements are becoming major drivers of shipping costs through the Strait of Hormuz.
Commercial shipping activity increasingly provides early signals about future conditions in global energy markets.
LNG shipping presents a fundamentally different risk profile from crude oil transportation during periods of geopolitical tension. Beney explains that "there's a big difference between carrying LNG on a ship versus carrying crude oil", noting that damage to an LNG carrier could result in "a very, very serious situation" and "a very, very dangerous thing for a crew on board a ship". Consequently, shipping companies must weigh not only the probability of an attack but also the potentially severe consequences of carrying liquefied natural gas through contested waters. This distinction influences vessel deployment, insurance underwriting and commercial willingness to accept cargoes in high-risk regions.
Insurance Costs Are Reshaping LNG Shipping Economics
LNG shipping economics are increasingly determined by security costs rather than traditional freight fundamentals. Beney notes that insurers may require substantial additional premiums before vessels enter the Strait of Hormuz, estimating that owners could face "between 6 and 10 million dollars for every single shipment" simply to secure additional cover. As a result, charterers, traders and energy companies must absorb significantly higher transportation costs even when physical exports continue uninterrupted. Over time, these commercial pressures may encourage greater diversification of energy supply routes and reinforce the strategic value of alternative sources of natural gas.
Frequently Asked Questions
Why are LNG carriers considered riskier than crude oil tankers?
LNG is transported at extremely low temperatures, and damage to an LNG cargo tank could create severe fire hazards. According to Tom Beney, this makes attacks on LNG carriers potentially more dangerous than attacks on crude oil tankers.
Are LNG exports still moving through the Strait of Hormuz?
Yes. According to the discussion, exports continue to move, although shipowners are making more cautious commercial decisions because of higher security risks and insurance costs.
How are insurance costs affecting LNG shipping?
War-risk insurance premiums have risen sharply, increasing the overall cost of transporting energy cargoes through the region and making commercial decisions more complex for shipowners and charterers.
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--- Written by Frédéric Guétin, StoneX TV Producer
--- Expert: Tom Beney, Senior Vice President of Ocean Freight, StoneX
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