Asian LNG Prices Surge to Highest Since 2022 as Iran War Escalates
Spot LNG prices for Asian buyers went up to almost $26 per million British thermal units yesterday for a 5% weekly gain following the resumption of strikes between the United States and Iran. Spot LNG for Asia traded at $25.908 per mmBtu late on Wednesday, Bloomberg reported, citing unnamed traders,
Source: OilPrice.com
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DW NOTE
The Strait of Hormuz has been effectively closed since February 28, and Asian buyers are now paying 2022-level premiums to source LNG from anywhere else. Every cargo they can't get through the Gulf is a cargo they're bidding away from Europe or the U.S. — which means the price spike isn't a war premium, it's a scarcity premium.