Henry Hub Prices Insulated from Global Stress for Now

The recent U.S.-Iran conflict and the closure of the Strait of Hormuz have had little impact on Henry Hub's gas prices, which remain near their pre-war levels from February 27. In fact, prices briefly fell below those levels in April and May.

This divergence from global gas market stress is largely due to Henry Hub's relative insulation from international gas shocks. However, rising summer cooling demand across the U.S. and North Asia, alongside tighter LNG availability, could increasingly link Henry Hub to international gas market stress.

Rising summer cooling demand is expected to put pressure on Henry Hub prices as well as JKM and TTF, which continue to trade above pre-war levels.