Asian spot LNG prices hit five-month high on Hormuz impasse

Asian spot liquefied natural gas (LNG) prices reached a five-month high this week due to concerns over the ongoing impasse in US-Iran talks aimed at reopening the Strait of Hormuz. The region's average LNG price for October deliveries to northeast Asia climbed from $21.30 per million British thermal units (mmBtu) the previous week to $22.50 per mmBtu.

This price surge comes as fears persist over reduced supply from major oil producers, including Saudi Arabia, Iraq, the UAE, and Kuwait, following US President Donald Trump's threats of economic sanctions on Iran's trading partners. These sanctions, aimed at toppling the Iranian leadership, are expected to tighten supply in the coming weeks, further bolstering LNG demand.