A conflict involving the U.S., Israel, and Iran began on February 28, 2026. This escalation severely disrupted the global liquefied natural gas (LNG) market.
Iran effectively closed the Strait of Hormuz. This vital waterway facilitates approximately 20% of global LNG trade. The closure halted all shipments from major producers, including Qatar.
Retaliatory strikes damaged key energy infrastructure at Qatar’s Ras Laffan LNG facilities. Engineers estimate these repairs could take several years to complete.
Global energy prices surged as Asian and European benchmarks reached record highs. Nations are now competing for a limited supply of alternative cargoes. U.S. export capacity is already stretched and cannot replace the lost Qatari volumes.
The crisis threatens energy security in import-dependent nations across Asia and Europe. The situation is expected to delay new U.S. LNG projects. Some Asian countries may revert to coal power to offset the supply shock.