Oil pares gains as doubts linger over U.S.-backed plan to protect Strait of Hormuz shipping

Group 1 - Oil prices are rising due to recent Iranian attacks on UAE energy infrastructure and a tanker incident in the Gulf of Oman, raising concerns about military escorts for tankers in the Strait of Hormuz [1] - The liquefied natural gas (LNG) market may face more significant long-term impacts from the blockade compared to the oil market, as LNG production is more concentrated [1] - Qatar supplies approximately 20% of global LNG, with the Ras Laffan facility offline since March 2nd, making it increasingly difficult to restart the facility [2] Group 2 - Nearly 90% of LNG that passes through the Strait of Hormuz is directed towards Asia, where buyers are urgently trying to compensate for lost cargoes [3] - JKM pricing has exceeded $20 per MMBTU, prompting some ships originally destined for Europe to redirect to Asia for better prices, coinciding with the start of the European gas injection season [3]