SEATTLE (Oil Monster): The International Energy Agency (IEA) has cautioned that ongoing Middle East disruptions are significantly impacting the global liquefied natural gas (LNG) market, driving price volatility and delaying anticipated market rebalancing.
In its latest quarterly gas market report, the IEA highlighted that shipping disruptions through the Strait of Hormuz have effectively removed nearly 20% of global LNG supply since March. This has triggered sharp price surges across Asia and Europe, with natural gas prices reaching their highest levels since January 2023 during peak volatility.
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Earlier signs of market easing during the 2025–26 heating season—supported by a 12% year-on-year rise in LNG trade and a 25% decline in benchmark prices—have now reversed. Extreme weather events across North America, Europe, and East Asia have further intensified demand pressures.
Global LNG production dropped 8% year-on-year in March, with reduced exports from Qatar and the United Arab Emirates only partially offset by increased output elsewhere.
The IEA warned that potential infrastructure damage in Qatar could delay new supply growth by up to two years, resulting in a cumulative loss of 120 billion cubic metres between 2026 and 2030. This could prolong tight market conditions and reinforce the need for sustained investment and diversified supply strategies.
