Asian LNG prices surge to three-year peak over Iran conflict

Asian liquefied natural gas soared to the highest level since 2023, as the West Asia conflict forced a shutdown at the world’s largest export plant in Qatar and halted shipping through the Strait of Hormuz.

Spot prices reached $25.40 per million British thermal unit in Asia, according to traders, more than double last week. Further upward pressure is expected for as long as Qatar’s output remains suspended and the vital trade route is choked, they added.

Qatar produces about a fifth of the world’s LNG and much of it goes to Asian buyers including China, India, South Korea and Taiwan. These importers are now rushing to find alternatives as concerns rise over prolonged disruptions.

One immediate impact “would be cargo competition between Europe and Asia” as shipments are often redirected to higher-paying markets, said Evan Tan, an LNG analyst at ICIS. As both European and Asian prices rally, traders are watching price spreads to see which region might be more profitable.

Already, European natural gas prices have spiked to the highest since 2023 after climbing 70% since Friday, as uncertainty looms over how long the Qatar suspension will last. The situation threatens the European Union’s ability to build up inventories for next winter given the bloc is trying to phase out Russian gas imports.

China and India are set to take the biggest hit from Qatar’s shutdown because of their exposure, and these countries may switch to alternatives such as coal instead of procuring expensive spot cargoes at a premium, Tan said. In the long run, the fallout may push companies to “rethink their portfolio diversification strategies,” he added.

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Published on March 4, 2026