Bloomberg

Thursday, July 16, 2026 12:13 | 2 minutes read

Liquefied natural gas prices in Asia rose to the highest level since late March, as renewed confrontations in the Middle East heightened fears that shipping disruptions through the vital Strait of Hormuz could continue for longer.

Spot LNG cargo prices reached about $20.2 per million British thermal units, according to traders, after rising by about 10% over the past week.

The conflict has escalated in recent days as the confrontation between the United States and Iran over control of the strait intensifies. The strait is a key passage for about a fifth of global LNG supplies. The US has launched more attacks on Iran to pressure Tehran to stop targeting ships and reopen the Strait of Hormuz.

In response, Iran's Revolutionary Guards announced on Wednesday that the waterway would remain closed until the US stops its strikes and lifts the blockade on Iranian ports.

The renewed tensions have already driven Asian buyers to seek more gas cargoes. Pakistan bought its most expensive spot cargo in four years at about $20.70 per million British thermal units, according to traders, after canceling a cargo scheduled to be received from Qatar due to the disruptions in the Strait of Hormuz. Other countries, including India, Thailand, and Bangladesh, have also tendered for gas cargoes recently.

Mon, 13 2026

Ship traffic through the Strait of Hormuz has nearly ground to a halt since the US resumed its naval blockade of Iran after a wave of attacks on commercial vessels, although a small number of ships have managed to traverse the waterway.

Impact of Hormuz disruptions

The ongoing disruptions will keep LNG supply tight, especially in Asia, where buyers rely heavily on Qatari cargoes. Spot LNG cargoes are currently trading at nearly twice pre-war levels.

Evan Tan, an LNG analyst at ICIS, said: 'For buyers in Asia, this delays the hoped-for return of Qatari supplies for longer.'

He added: 'If geopolitical tensions continue over the next two months, low inventories in Europe and sustained strong demand in Asia will push both regions to offer higher prices for spot cargoes for the rest of the year.'

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