Asia's LPG market remains cautious despite news of a possible U.S.-Iran peace deal, with participants noting that the immediate priority is to move stranded vessels in the Middle East out rather than restoring Strait of Hormuz flows.
Many participants have adopted a wait-and-see approach, focusing on whether vessels can safely exit. For them, this is a test of whether conditions are stable enough to support a broader recovery of Hormuz LPG flows.
There were around 21 Very Large Gas Carriers transiting the Strait of Hormuz weekly pre-war, but this has dropped to two to four vessels per week following the war, according to analysts. Currently, around nine VLGCs remain stuck in the Middle East awaiting safe transit.
Indian shipbroking sources heard that Indian naval authorities have been in discussions with traders and shipowners to facilitate the safe exit of the country's vessels and ships carrying cargoes destined for India on a CFR basis.
India is the Asian market most affected by the war, given its traditional reliance on Middle East cargoes for supply. With ongoing supply tightness, sources said Indian importers are now prioritizing the movement of existing cargoes already secured across the Strait of Hormuz.
