$23 Billion Windfall: US-Iran War Drives Up Gas Prices, Boosts Aussie Exporters

The ongoing US-Iran war is creating an unexpected windfall for Australian gas exporters. New figures suggest that soaring gas prices could add $23 billion to their combined revenue this year, reversing what was expected to be a period of decline.

Liquefied natural gas (LNG), one of Australia's most lucrative exports, is fetching more than double its pre-war prices due to the ongoing conflict in the Middle East. The disruption of shipping through the Strait of Hormuz has crippled up to 20% of the world's LNG supply, leading to a surge in demand for replacement cargoes.

The Department of Industry, Science and Resources has updated its forecasts, revealing that LNG revenue is now expected to climb to as high as $70 billion this financial year. This is a potential $23 billion increase on the government's earlier forecast, which had suggested export earnings would slip from over $50 billion to $47 billion.

While the short-term market surge is benefiting Australian gas producers, experts warn that the longer-term outlook carries distinct risks. Government projections suggest Australia's LNG earnings will begin to normalise by 2031, easing from $70 billion back to $42 billion.