A prolonged disruption would keep LNG supplies tight, particularly for Asia, where buyers rely heavily on Qatari cargoes
Published Thu, Jul 16, 2026 · 01:39 PM
ASIAN liquefied natural gas prices rose to the highest since late March on Thursday (Jul 16) as fresh hostilities in the Middle East deepened concerns that shipping through the key Strait of Hormuz will remain disrupted for longer.
Spot LNG traded at about US$20.2 per million British thermal units, according to traders, after surging about 10 per cent over the past week.
The conflict has intensified in recent days as the US and Iran feud over control of the strait, a key conduit for about a fifth of global LNG supply.
The US carried out more strikes on Iran to pressure Teheran to stop attacking vessels and reopen the Strait of Hormuz.
Iran’s Islamic Revolutionary Guard Corps said on Wednesday the passage will stay shut until the US ends its strikes and the blockade of Iranian ports.
Ship movements have slowed to a near standstill since the US resumed its naval blockade of Iran after a wave of attacks on commercial vessels, although a handful of them have still made the crossing.
A prolonged disruption would keep LNG supplies tight, particularly for Asia, where buyers rely heavily on Qatari cargoes. Spot LNG is now trading at roughly twice its prewar level.
“For Asian buyers, this further delays the hopeful return of Qatari volumes,” Evan Tan, an LNG analyst from ICIS, said.
“Assuming geopolitical tensions continue into the next couple of months, a storage-short Europe and firm Asian demand will have both regions bidding up spot prices through later parts of the year,” he added. BLOOMBERG
