Global LNG Gains, Hormuz Blockade Looms as Majors Report Q1

Global energy majors Woodside Energy and TotalEnergies reported first-quarter earnings buoyed by liquefied natural gas trading, as the prolonged conflict in the Middle East continues to reshape energy markets and supply routes. The developments come as the U.S. prepares for an extended naval blockade of the Strait of Hormuz, according to a Wall Street Journal report.

President Donald Trump has directed aides to prepare for a prolonged U.S. Naval blockade of the critical waterway, the Journal reported, as the U.S. seeks to intensify economic pressure on Iran. The strategy aims to stop any vessel heading to or from Iranian ports. This decision suggests an indefinite period of uncertainty for traffic through the strait, which Iran has kept closed to almost all other traffic. Brent crude settled above $111 a barrel on Tuesday amid concerns of a protracted closure.

For Bakken operators, the continued volatility and potential for sustained high oil prices underscore the global market's sensitivity to Middle East disruptions. The situation was further complicated by the United Arab Emirates announcing its departure from OPEC on Tuesday, a move its energy minister said was timed because the war-caused shortages require market agility.

Despite the geopolitical turmoil, some major LNG exporters have shielded operations. Woodside Energy Group Ltd. said Wednesday its LNG shipments have not been impacted by the Middle East conflict and it has largely avoided increased costs from higher carrier rates. The Australian producer stated it does not have any controlled shipping that traverses Iranian waters or the Strait of Hormuz.

Woodside's LNG sales rose to 22 million barrels of oil equivalent (MMboe) in Q1, up from 20.47 MMboe in the prior quarter. The company credited its strategy of securing term shipping for limiting exposure to volatile spot LNG carrier rates. CEO Liz Westcott said "modest increases" to portfolio pricing were driven by elevated spot prices, with further benefits expected in subsequent quarters due to lagged contract pricing.

TotalEnergies SE also capitalized on the turbulent environment, reporting a 41% quarter-on-quarter increase in adjusted net profit to $5.4 billion for Q1. The French giant raised its Q1 2026 dividend to EUR 0.9 ($1.05) per share, a 5.9% increase, though it refrained from an annual hike due to the war-driven volatility. The company's board authorized share repurchases of up to $1.5 billion in Q2.

TotalEnergies' results were driven by its integrated model, with adjusted net operating profit from its integrated LNG segment jumping 43% quarter-on-quarter to $1.32 billion. The company said the improvement was "underpinned by the LNG production increase and strong trading activities benefiting from market volatility." Its overall production held steady at 2.55 MMboepd despite war-related shutdowns in Iraq, Qatar, and the UAE that impacted 15% of its output.

For North Dakota producers, the majors' earnings demonstrate the financial upside captured by companies with diversified global portfolios and trading arms during supply disruptions. However, the planning for an extended Hormuz blockade points to a new phase of persistent geopolitical risk that will continue to influence global crude benchmarks and market strategy.