US natural gas futures rose to about $3.40 per MMBtu on Monday, their highest level in a month, as mounting concerns over the escalating conflict in the Middle East fueled fears of longer-term disruptions to global gas supplies.
Market participants are increasingly worried that extended interruptions to LNG shipments from the region—particularly in the event of a prolonged closure of the Strait of Hormuz—could drive stronger demand for US gas. This comes as the Iran war has so far had only limited impact on US production or export flows.
Adding to supply concerns is the uncertainty over when QatarEnergy’s Ras Laffan complex, the world’s largest LNG export hub, will be fully back to normal operations. Any delay in restoring capacity there heightens the risk of a global gas shortfall.
The conflict has now entered its second week with no clear resolution in sight. Iran continues to launch attacks against its neighbors in the Middle East, while Israel has targeted fuel depots in Iran and issued threats against the country’s power grid, further stoking geopolitical and energy market tensions.
