Asia Spot LNG Prices Hit 5-Month High as Hormuz Blockage Drags On

Asia's spot LNG prices surged to a five-month high on Tuesday due to the ongoing blockage in the Strait of Hormuz. Traders reported the price reaching $24.614 per million British thermal units (MMBtu), surpassing the $23.388 per MMBtu seen on Friday. This marked the most expensive spot LNG delivery in Asia since the winter of 2026.

The increase in prices occurred after Qatar's state-owned company, QatarEnergy, extended its force majeure notice on LNG deliveries into November due to the ongoing blockade. The rally in LNG and gas prices continued into the new week, with the U.S. and Iran exchanging fire for the first time in over a month. Asian buyers, particularly from South Asia like Pakistan and Bangladesh, were actively seeking spot supply to replace term supply from Qatar that cannot currently transit through the Persian Gulf.

South Korean, Indian, Taiwanese, and Bangladeshi utilities were among those looking to purchase spot cargoes for October and November. European gas prices also experienced a 5% jump on Monday, reaching a peak of 70 euros, or $81.20, per megawatt-hour (MWh), marking the highest level in over three and a half years since January 2023.

This surge in prices was driven by the renewed tensions between the United States and Iran, which led to the resumption of hostilities and fears about Middle East LNG supply.