A powerful cyclone hitting Australia has halted production at three major liquefied natural gas (LNG) plants, knocking out approximately 8% of the world's supply. The disruption adds significant strain to an already volatile global energy market, which is grappling with Middle East tensions that have threatened key shipping routes. Operations at facilities belonging to Woodside Energy Group and Chevron Corp. have been affected, creating immediate uncertainty for major LNG buyers, particularly in Asia. This sudden supply shock could lead to higher energy prices globally if the shutdowns are prolonged, compounding inflationary pressures.
Market Impact: U.S. stock futures traded lower ahead of the market open, with S&P 500 Futures at -0.50%, Nasdaq Futures at -0.72%, and Dow Futures at -0.41%. Cryptocurrencies also declined, with Bitcoin down -3.73% and Ethereum down -3.98% since the last session's close.