Asian LNG Prices Hit Highest Since March
Taylor Wilson
Asian spot LNG has climbed to about $20.2 per million British thermal units as the Strait of Hormuz remains blocked — up roughly 10% in a week and double pre-conflict levels, squeezing buyers dependent on Qatari cargoes.
How much has the price moved?
Asian spot LNG is trading at about $20.2/MMBtu, the highest since late March.
The past week alone saw a roughly 10% gain; prices have roughly doubled from pre-conflict levels.
This means → Asian gas procurement costs have surged twofold in weeks, feeding straight into downstream power and industrial fuel bills.
What is happening at the Strait of Hormuz?
The Strait of Hormuz — a narrow waterway linking the Persian Gulf to open sea, carrying about one-fifth of the world's LNG supply — is nearly shut to shipping.
The U.S. has launched fresh airstrikes on Iran, demanding Tehran stop attacking vessels and reopen the strait; Iran's Revolutionary Guard says the strait stays closed until the U.S. halts strikes and lifts its port blockade.
In plain terms = neither side is backing down, and the strait has become a bargaining chip — as long as the standoff holds, ships cannot pass and gas cannot flow.
Why are Asian buyers hit hardest?
Asian importers rely heavily on Qatari LNG shipped through the strait; a blockage cuts off the supply at source.
ICIS LNG analyst Evan Tan noted: "This further delays the expected recovery of Qatari volumes."
This means → unlike Europe, which can partly offset lost LNG with pipeline gas, Asia's dependence on seaborne cargoes makes it the most exposed buyer in this crisis.
Will prices keep climbing?
Evan Tan's view: if geopolitical tensions persist for months, low-inventory Europe and steady-demand Asia will bid against each other for spot cargoes in the second half of the year.
This reflects a broader risk — the world's two largest LNG-buying regions competing for a shrinking pool of available supply, raising the odds of a price spiral.
In plain terms = Europe is short on stockpiles, Asia is short on supply; both are chasing the same ships, and that only pushes prices higher.
Content is for reference only, not financial advice.