US-Iran war chokes off 20% of global LNG supply, hitting Asia with $7 billion cost surge

Since US and Israeli strikes on Iran began on February 28, 2026, the Strait of Hormuz has been largely shut to liquefied natural gas shipments. That narrow waterway normally handles about 20% of global LNG supply, primarily from Qatar and the UAE. With it blocked, developing nations across Asia are staring down an estimated $7 billion increase in LNG costs. Qatar’s export collapse and Asia’s supply crisis Qatar, the world’s largest LNG exporter, has been the hardest hit producer. Before the conflict, the country was shipping roughly 80.9 million tons of LNG annually. By April 2026, monthly exports had collapsed to around 1 million tons, down from an average of 6 to 8 million tons per month. QatarEnergy’s Ras Laffan complex sustained physical damage that has knocked out 17% of Qatar’s total export capacity. Repairs are expected to take 3 to 5 years. Monthly LNG imports across Asia dropped to 18.74 million tons in April, a six-year low. China, Japan, and South Korea, the region’s three largest importers, all faced drastic reductions in available supply. Spot LNG prices tell the story in a single data point. Pre-conflict, Asian spot cargoes were trading around $10 to $11 per million B...