Middle East Conflict Sparks Global Energy Crisis

The ongoing conflict in the Middle East has sent shockwaves through the global energy market, causing prices to skyrocket and forcing countries to rethink their reliance on liquefied natural gas (LNG).

A record wave of new LNG supply was expected to drive down prices, but the near-closure of the Strait of Hormuz and damage to Qatar's LNG export plant have led to a loss of faith in LNG as a reliable and affordable energy source.

Countries such as India and Bangladesh are rethinking their use of LNG, while others like Vietnam and the Philippines are exploring alternatives. Some nations are investing more in renewable energy sources and domestic gas fields to curb their reliance on imports.

According to ICIS, global output is expected to drop by 0.4% in 2026 due to a five-month outage at Qatar's Ras Laffan plant, the first contraction in over a decade.