US-Iran Conflict Sparks Global LNG Crisis

The US-Iran conflict has had far-reaching consequences for global liquefied natural gas (LNG) supply, particularly in Asia. The Strait of Hormuz, which normally handles about 20% of global LNG shipments, has been largely shut since February 28, 2026, due to the strikes on Iran.

Qatar, the world's largest LNG exporter, has been severely impacted, with its exports collapsing from an average of 6-8 million tons per month to just 1 million tons in April 2026. This collapse is attributed to physical damage at QatarEnergy's Ras Laffan complex, which has knocked out 17% of the country's total export capacity.

Repairs are expected to take 3-5 years, ensuring that a significant chunk of global LNG capacity will remain offline until at least 2029. The crisis has led to a surge in Asian spot LNG prices, with mid-2026 prices reaching between $20-$27 per million British thermal units (MMBtu), up from pre-conflict levels of around $10-$11.

Asian buyers have turned to the US for alternative supplies, but even this is becoming increasingly expensive. Developing nations such as Bangladesh and Pakistan are being priced out of the market, while others are reconsidering their transition away from coal or accelerating investments in renewable energy.