Oil prices fall as Iran signals Strait of Hormuz reopening: What it means for crude prices

A liquefied natural gas (LNG) tanker from Qatar has navigated the Strait of Hormuz and is en route to Pakistan, according to Pakistan's Petroleum Minister Ali Pervaiz Malik. The Bermudan-flagged Shandong Redwood, measuring 283 meters in length, is expected to dock at Karachi's Port Qasim on September 23, as confirmed by the Port Qasim Authority. The 11.5-meter draft vessel is currently sailing at 7 knots through the Arabian Sea.

This transit of an LNG tanker to Pakistan occurs amid ongoing tensions between Iran and the United States, which have severely disrupted shipping through the Strait of Hormuz. Iran has largely restricted commercial traffic in the waterway since military clashes escalated earlier this year, leading to global supply shocks and soaring energy prices.

Pakistan's Interior Minister Mohsin Naqvi is currently in Tehran for discussions with senior Iranian officials to ease tensions. The tanker left Qatar's Ras Laffan export terminal on June 28 and was anchored at Al Hamriyah in the United Arab Emirates from September 7 before making its final transit.

This is the tenth LNG cargo Pakistan has received since April, with one delivered earlier this month. Pakistan heavily relies on Qatari LNG to power its grid, needing four to five cargoes a month during peak demand to keep around 5,000 megawatts of LNG-fired generation running. Disruptions in deliveries have strained the grid, prompting authorities to impose rolling blackouts of up to 12 hours. Natural gas comprises about 17 percent of Pakistan's power generation, alongside coal, hydropower, and nuclear energy.

Despite its diplomatic relations with both Washington and Tehran, Pakistan has repeatedly called for de-escalation in the Middle East to safeguard sea lanes and regional trade routes.