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In the past two weeks however, it has become equally profitable to deliver LNG to both Europe and Asia, so spot cargoes are now incentivised to travel to Asia via the Cape of Good Hope, increasing average voyage times and reducing vessels available for charter, Afghan said.

The Israel-Iran conflict, in which both countries have been firing missiles at each other, has raised fears Tehran may close the Strait of Hormuz in further retaliation.

As a result, shipowners are holding off chartering vessels, which is reducing tanker availability and pushing up prices, said a trade source, who declined to be identified as he was not authorised to speak to the media.

Insurance costs for LNG tankers going through the Strait of Hormuz have also increased, said three trade sources, with one adding that the war risk premium has surged by up to five times since the start of the Israel-Iran conflict.

Oil prices tumbled again on Tuesday, after Donald Trump said Israel and Iran had agreed to a ceasefire.

Around 20 percent of global oil and gas demand flows through the Strait of Hormuz, situated between Iran and Oman.

Qatar, one of the world’s top LNG exporters, sends almost all of its supplies via the strait.